Data Centers Uncover Massive Energy Needs in the US, Promising Big Gains

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As electric bills continue to climb, states are feeling the pressure to shield regular household and business ratepayers from the costs associated with powering Big Tech's energy-intensive data centers, reported Marc Levy for The Associated Press on August 9.

"It's not clear that any state has a solution, and the actual effect of data centers on electricity bills is difficult to pin down," Levy wrote. "Some critics question whether states have the spine to take a hard line against tech behemoths like Microsoft, Google, Amazon, and Meta.

Nevertheless, more than a dozen states have started taking action as data centers drive a rapid expansion of power plants and transmission lines. This has involved urging the nation's largest power grid operator to control price hikes, examining the impact of data centers on electricity bills, or encouraging data center owners to cover a larger portion of local transmission costs.

Rising power bills are "something legislators have been hearing a lot about. It's something we've been hearing a lot about. More people are speaking out at the public utility commission in the past year than I've ever seen before," Charlotte Shuff of the Oregon Citizens' Utility Board, a consumer advocacy group, told Levy. "There's a massive outcry."

Some data centers demand more power than entire cities, dwarfing even massive factories. This is prompting policymakers to reconsider a system that has traditionally distributed transmission costs among consumer classes based on their electricity usage.

"A lot of this infrastructure, billions of dollars of it, is being built just for a few customers and a few facilities, and these happen to be the wealthiest companies in the world," said Ari Peskoe, director of the Electricity Law Initiative at Harvard University, according to the AP article.

Wanted: Access to Cheap Energy

According to some experts, it all comes down to the fact that the "new moat" for businesses isn't access to energy, but access to cheap energy.

"The firms that can lock in 24/7 low-cost supply, time-shift non-urgent workloads into off-peak windows, and co-locate compute with stranded or overbuilt renewables will win," Enrique Dans wrote for Fast Company on September 4. "Everyone else will pay retail and pass those costs on to users or investors. We are already seeing utilities, grid operators, and tech companies negotiate curtailment and flexibility, and the International Energy Agency's (IEA's) modeling makes the near-term picture obvious: AI-related demand is rising, and it will test systems that were not designed for this kind of always-on compute."

As the "AI wars" intensify, the victors won't just be those with the best user experience or the most computing power. They will be the companies that can secure plentiful low-cost energy at scale, consistently over time, he said.

"That's where AI is colliding with the physical world, and where the story stops being about software and starts being about grids, turbines, and price curves," he said.

But the crunch will also hit everyone, not just businesses.

"Even if you've never used ChatGPT or generated an AI image, chances are you're already paying for it," Jesus Mesa reported for Newsweek on August 7.

According to PJM's independent market monitor, Monitoring Analytics, approximately 75% of the capacity price rise for electricity is linked to demand from both existing and planned data centers. The watchdog anticipates that an additional US$9.3 billion in future expenses will begin to impact consumer bills this month, Mesa reported.

"These are not your average server farms," stated Abraham Silverman, an energy researcher at Johns Hopkins University. "AI training centers — hyperscale facilities — can draw hundreds or thousands of megawatts at a single site. It's like building five nuclear plants into the grid every year, just for AI."

According to a May 5 research note by Roth Senior Analyst Darren Aftahi noted that "demand continues to outstrip supply" for the electricity needed for the data centers.

"Both Meta and Microsoft have acknowledged that the demand for AI is outpacing the available infrastructure, leading to capacity constraints in certain regions and workloads, and prompting an increase in both short-term and long-term capital expenditures," Aftahi wrote. "META has raised its CapEx guidance, while MSFT anticipates being 'short of power' through the second half of the calendar year."

According to a piece by Loran Shkolnik for Bullish Bears on September 3, data centers are "the digital world's backbone."

They house computing infrastructure and are crucial for storing, processing, and distributing large volumes of data. Their importance will only grow as our data consumption rises daily with the advancement of AI. Numerous data center stocks are listed on U.S. stock exchanges, and many are hitting new all-time highs on a weekly basis. Want to invest in that backbone? Experts say there are many opportunities, from large to small companies.

Equinix Inc.

First on Shkolnik's list of data center stocks is Equinix Inc. (EQIX:NASDAQ). The company operates more than 260 data centers across 33 countries on five continents. Clients have the option to rent space, power, and cooling for their servers and networking equipment within the same facility.

Equinix's data centers are strategically located in major metropolitan areas around the globe. The company also caters to hyperscale clients, including major cloud service providers. As of January 2025, Equinix's stock is trading near its all-time high, which was set in November 2024. The company has achieved 86 consecutive quarters of top-line revenue growth, with profitability consistently on the rise. Equinix is expanding and is likely to continue leading in this sector.

In July, Insider Monkey named it one of its top real estate investment trusts (REITs) and Guggenheim initiated coverage on the company, assigning a "Buy" rating with a price target of US$933 per share.

Guggenheim "identified Equinix as one of the two very large publicly traded data center operators benefiting from its scale in capital access and technology deployment . . . (and) highlighted the company's annual revenue, which reached US$8.8 billion, growing at a 5.7% rate," the report, written by Neha Gupta on July 16, noted. "Guggenheim anticipates Equinix will become a leading force as consolidation reshapes the data center landscape."

According to the Bullish Bear report, the company has reported 86 consecutive quarters of top-line revenue growth, and its profitability has consistently risen. "The company is growing and will likely continue dominating this space," the report said.

The company announced it was acknowledged as a leader in the IDC MarketScape: Worldwide Datacenter Colocation Services 2025 Vendor Assessment due to its extensive product range, strategic approach, and strong emphasis on innovation and continuous development to foresee and fulfill the future needs of its customers.

"Equinix is a major and trusted player in the digital infrastructure space and very well-equipped to support enterprise requirements around global reach, hybrid multicloud connectivity, and the growing need for AI-ready data centers," said Courtney Munroe, research vice president, Worldwide Telecommunications Research, for IDC. "The company continues to demonstrate an acute focus on reliability, performance, and innovation to meet the current and future requirements of its customer base, no matter where they are in the world."

The company has paid three dividends to shareholders in 2025, including a quarterly dividend of US$4.69 per share announced on July 30.

Refinitiv reports less than 1% of the company is owned by insiders and management and about 98% is owned by institutions. The remaining 1% is retail.

Top shareholders include The Vanguard Group Inc. with 13.31%, BlackRock Institutional Trust Co. with 6.64%, State Street Global Advisors with 6.39%, Geode Capital Management with 2.56%, and Cohen & Steers Capital Management with 2.28%.

Its market cap is US$76.29 billion with 97.86 million shares outstanding. It trades in a 52-week range of US$701.41 and US$994.03.

Iron Mountain Inc.

Iron Mountain Inc. (IRM:NYSE) is relied upon by over 240,000 clients across 61 countries, including around 95% of the Fortune 1000, according to the company's website.

The company said it offers a wide array of solutions in information management, digital transformation, information security, data centers, and asset lifecycle management.

Its stock has gone up 10% since the beginning of September.

In August, the company released its second quarter results for 2025, which included revenue of US$1.7 billion, marking an 11.6% increase on a reported basis and an 11% rise when excluding foreign exchange effects over the same period in 2024.

Its data center, digital, and asset lifecycle management (ALM) businesses also collectively expanded by more than 30%, the company said.

The company also delivered a record quarterly Adjusted EBITDA of US$628 million and generated a record quarterly Adjusted Funds From Operations (AFFO) of US$370 million, or US$1.24 per share.

Due to strong operational performance, the company said it raised its 2024 financial guidance.

According to an updated research note on August 12, Freedom Broker Analyst Viacheslav Obodnikov said the company remained a "solid bet."

"Iron Mountain delivered a strong Q2 2025, with revenue and adjusted EBITDA exceeding expectations, propelled by outstanding performance in its Asset Lifecycle Management (ALM) business," the analyst wrote. "Management raised its full-year 2025 guidance on the back of this performance. However, the company also significantly lowered its forecast for new data center lease signings in 2025 from 125 MW (megawatts) to 30–80 MW, citing a temporary shift in hyperscaler demand."

Viacheslav continued, "Still, we maintain our price target at US$110. We reiterate our Buy rating, as the current valuation does not fully reflect the company's resilient core business and long-term growth potential."

Management is optimistic about a recovery in data center leasing in 2026, emphasizing a 500 MW development pipeline and forecasting that revenue growth for this segment will surpass 25% in 2026, fully backed by its current pre-leased backlog, the analyst noted.

Data Centre Magazine noted that the company is "synonymous with security — offering ultra-secure, sustainable co-location across Europe.

"Its global platform spans 30 locations, with five in Europe, and its customers include leading hyperscale and enterprise clients," the magazine said. "Iron Mountain delivers managed, sustainable services in both new and emerging European markets."

According to Refinitiv, about 1% of the company is owned by insiders and management and about 86% by institutions. The rest is retail.

Top shareholders include The Vanguard Group Inc. with 15.83%, BlackRock Institutional Trust Co. with 7.03%, State Street Global Advisors with 5.69%, Cohen & Steers Capital Management with 4.66%, and Geode Capital Management with 2.74%.

Its market cap is US$28.55 billion with 295.35 million shares outstanding. It trades in a 52-week range of US$72.33 and US$130.24.

Vertiv Holdings

Vertiv Holdings Inc. (VRT:NYSE) is up about 14% over the last two months from US$120.72 on July 10 to US$137.71 on September 10.

Marketbeat reported that Vertiv has a consensus rating of "Moderate Buy" from the 27 analysts currently covering the company. Among these analysts, one has given the stock a sell rating, six have rated it as hold, eighteen have assigned a buy rating, and two have issued a strong buy rating. The average twelve-month target price set by brokers who have covered the stock over the past year is US$142.

According to Vertiv's website, the company "solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network."

On September 3, the company announced a quarterly cash dividend of US$0.0375 per share of the company's Class A common stock, payable on September 25.

On August 26, it said it has acquired Waylay NV, a Belgium-based leader in hyperautomation and generative AI software platforms. The company said the acquisition is part of its ongoing investment in AI-driven monitoring and control technologies for its power and cooling systems.

Vertiv anticipates that this investment will enhance its ability to help customers worldwide increase uptime, optimize energy usage, and improve operational intelligence across their critical digital infrastructure.

"With the addition of Waylay's technology and software-focused team, Vertiv will accelerate its vision of intelligent infrastructure — data-driven, proactive, and optimized for the world's most demanding environments," said Vertiv Chief Executive Officer Giordano Albertazzi. "We are excited about the operational efficiencies and the resilience that Vertiv's further augmented predictive capabilities can provide for our customers."

Vertiv boasts a comprehensive product range that includes thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions, which is particularly noteworthy, according to a post by Zacks Investment Research on Trading View on September 8.

Over the past 12 months, Vertiv's organic orders have increased by approximately 11%, with a book-to-bill ratio of 1.2 times for the second quarter of 2025, indicating strong potential, the piece noted. The backlog grew 7% sequentially and 21% year over year, reaching US$8.5 billion.

Less than 1% of the company is held my management and insiders and about 82% is held by institutions, according to Refinitiv.

Top shareholders include The Vanguard Group Inc. with 10%, BlackRock Institutional Trust Co. with 4.52%, State Street Global Advisors with 2.17%, Fidelity Management & Research Co. with 2.07%, and BofA Global Research with 2.03%.

Its market cap is US$47.95 billion with 381.87 million shares outstanding. It trades in a 52-week range of US$53.60 and US$155.84.

However, for a small cap opportunity with a company utilizing its abundant natural gas stores to to power AI hubs, at least one expert points to Jericho Energy Ventures, Inc.

Jericho Energy Ventures Inc.

In April 2025, Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTC; JLM:FRA) unveiled its data center initiative, strategically positioning on its vast 41,000-acre portfolio of active oil and gas joint venture properties in Oklahoma. By utilizing abundant, low-cost on-site natural gas, JEV is converting its energy assets into secure, scalable, high-performance AI computing hubs specifically designed for the AI era.

JEV's build-to-suit (BTS) data centers leverage JEV's extensive network of over 60 miles of gas, power, and water infrastructure, along with prime positioning on a U.S. fiber "superhighway," to provide unmatched connectivity and performance.

In July, Jericho announced it had signed a memorandum of understanding (MOU) with M2 Development Solutions LLC to expedite the development of AI data centers across the United States. The agreement, finalized on July 6, 2025, extends Jericho's reach beyond its Oklahoma asset base into Ohio and Nevada, utilizing M2's large-scale development sites.

The Ohio location covers 400 acres and includes access to utility power and on-site natural gas power generation assets. In Nevada, the 3,700-acre site offers a diverse energy mix, including utility power access, on-site geothermal and solar capabilities, and natural gas-fed power generation. These features provide energy diversification options at a scale suitable for AI data center operations, which require substantial and reliable power sources.

"Our partnership with M2 is a transformative step in executing our AI data center strategy," said Chief Executive Officer Brian Williamson. "Integrating M2's gigawatt-scale sites accelerates our ability to deliver scalable, energy-efficient infrastructure for modern AI workloads."

Technical Analyst Clive Maund provided a positive evaluation of Jericho Energy Ventures in his April 1 report, emphasizing the company's strategic utilization of its natural gas assets for developing AI data centers. He noted that Jericho seemed to be "approaching the completion of a base pattern" and described the business as being "on a solid footing." Maund highlighted the company's recently announced modular data center initiative, which aims to transform natural gas reserves into on-site power for computing infrastructure. According to Maund, "this is potentially highly significant as the company has vast quantities of natural gas in the U.S. that can be used to feed power-hungry AI data centers."

He mentioned the company's plan to manage this initiative from its Tulsa, Oklahoma office and cited management's belief that Jericho is well-positioned "to offer secure, modular, latest, and next-generation computing infrastructure tailored for AI applications."

Maund also observed the stock's long-term chart activity, noting that it had reached a cyclical low and showed bullish indicators such as a strong accumulation line and moving average crossover. Based on both technical and strategic developments, Maund concluded that Jericho Energy Ventures was an "Immediate Speculative Buy."

Around 41% of Jericho's shares are held by management and insiders, the company said. They include CEO Brian Williamson, who owns 1.38%; founder Allen Wilson, who owns 0.99%; and board member Nicholas Baxter, who owns 0.49%; according to Refinitiv's latest research.

Around 34% of shares are held by the company's "Top 10 external shareholders." The rest is in retail.

JEV's market cap is CA$35.07 million, and it trades in a 52-week range of CA$0.08 and CA$0.21. It has 304.03 million shares outstanding, about 220.98 million floating.