The AI paradox (which is to say AI is driving the world of technology at an unprecedented pace) has relegated investors to the quest of finding big winners on either side of the AI transformation. Although NVIDIA and Google have been well-known for researching AI, there are more undiscovered companies that do power management and renewable energy solutions. Such companies will increasingly serve as must-see jewels in the booming market.
Renewable energy plan for data centers
With the combination of the quantitative growth of AI applications, data centers are experiencing energy consumption that we cannot remember ever before. With AI algorithms’ increased power, companies may need to run programs, and access to reliable and sustainable sources will ultimately be the primary concern. AES Corp (NYSE: Generally, AES is an ideal company with a cutting-edge technology positioning to exploit the advantages of new technologies.
In 2023, AES reached a record high with over 5.6 gigawatts of new power purchase agreements (PPAs) signed, the majority being served by technology giants interested in getting renewable energy solutions as the only viable solution for the green environment.
AES’s investment in renewable energy, including hourly match renewable energy, has displayed the company’s dedication to clean resources, and its products have attracted the world’s largest tech companies, such as Google, Amazon, and Meta. These organizations have committed themselves to carbon-free or renewable energy objectives by 2030, providing A.E.S.’s products with a significantly attractive market.
AES’s development pipeline has been expanded by more than 50 Gigawatts, and the company has secured advanced interconnection queue positions in the most important energy markets in the US. Hence, the company can fully satisfy the growing energy demands of the technology sector and will be able to assert its position in the market.
Since the world’s data centers are trying to achieve their sustainability targets, AES becomes the ideal partner because it is ready to benefit from the infrastructure of the AI-driven applications that the need is growing.
Leading the charge in thermal management solutions
In line with the ever-increasing energy needs of AI data centers, the value of prompt thermal management systems has never been higher. Vertiv, a pioneer in the thermal management of data centers, has an edge through proven advanced technology and excellent operational resilience.
A positive consequence of stock movement direction can be observed through Vertiv’s stock price, which increased by 252% in 2023, highlighting investors’ trust in the company and its value creation. To its credit, the company aims to maintain good customer relations, develop technologies ahead of the game, and achieve flawless operational performance, which are invariably a must in the AI-driven growth of the market.
Recently, Vertiv has achieved another strategic move, the acquisition of CoolTera, which has widely expanded its specialization into high-density and liquid cooling technologies, which are imperative to the AI data centers facing massive data computations and heat generation challenges.
When The company has some capacity expansions underway and a strong order basis, entering 2024, Vertiv will fulfill the surging needs for advanced cooling solutions in AI infrastructure environments. The company is found to be blazing forward in the field owing to its coupled high-density liquid cooling solutions, which are unmatched in the industry as a step towards GPU-accelerated computing.
Navigating the volatility of AI-driven market
Even though AI increases offer huge highs to investors, they also carry the volatility level. Public companies in this space tend to be swinging between high concern about share prices and increasing business results in a new market situation. Hence, diversification and prudent investment strategies will remain at the core of riding the storms in this volatile landscape.
Investors seeking investments in the AI excitement should diversify their holdings across companies resembling AES and Vertiv, which are supposed to win in the AI-fully utilized data centers’ growing energy and heat management needs. The opportunities are exciting but come along with risks. Therefore, one must be cautious and seek guidance from financial experts to maximize profitable ventures in this dynamic industry.
AI is the major force that alters the pattern of industries and introduces innovations in existing technologies; most of the time, companies that become famous in renewable energy and thermal management solutions assist the infrastructure used in this AI revolution.
AES and Vertiv exist in contrast to many companies whose business ways are hindered by the AI revolution. These are examples of companies that are well-placed to capitalize on the AI boom and, as such, are beautiful opportunities for investors to grow at a time when the markets are volatile.
