Americans will wake up to a nasty rate hike on their power bills this summer.
Insatiable demand from artificial intelligence (AI) data centers is sopping up spare capacity, straining an already overloaded and aging power grid.
North American Electric Reliability Corp. projects that electricity demand will double from 221,000 gigawatt hours last year to 564,000 in 2024.
And with the government in debt up to its eyeballs, we’ll soon find ourselves trading off Social Security for air conditioning.
Solutions do exist. And for the savvy investor, they present significant opportunities.
From traditional investments in utilities…
… to lower our power consumption with unique innovations like graphene…
… we’re going to explore this issue and provide you with actionable insights to capitalize on the moment.
A Powerful Tortoise
Utility companies aren’t sexy investments.
They’re conservative, with steady revenues and reliable dividends.
Like food, people and businesses need power to exist these days. So, even during economic downturns, power consumption doesn’t drop that much.
But on the flip side, they don’t grow that quickly either.
Their profitability comes down to the cost of debt, which they use to fund capital projects.
Right now, interest rates are high, making them less profitable.
Additionally, higher rates make their current dividend yields less attractive since you get paid more at the “risk-free” rate of a Treasury Bond.
This often causes utility stocks to sell off with Treasury bonds until the dividend yield is higher.
That’s the way it’s been for the last few years.
But, in the last three months, utilities have gained 13.5%, outperforming EVERY other sector in the S&P 500 except communications.
Sector revenues have started to climb, with expectations they’ll grow at an average of almost 10% annually!
That would be uncharacteristically aggressive for the sector.
However, the same report we cited earlier said we could start seeing rolling blackouts in certain areas.
Those are already common in places like California and Texas.
Yet, with average temperatures higher earlier in the summer this year, some predict it could extend to the entire southeastern United States.
While you can invest in individual utilities, we’re partial to the exchange-traded fund (ETF).
Calamities can strike individual utilities as they did in California and Hawaii.
With an ETF like the Utilities Select Sector SPDR Fund (NYSEARCA: XLU), you get the same exposure without the company and geographic specific risk.
While investing in power companies is fine for the here and now, the real money is in the future.
Graphene Power
George Gilder has been all over graphene and its potential to revolutionize fields from medicine to defense.
In data centers, graphene can improve efficiency and lower power consumption simultaneously.
You see, graphene has extraordinarily high electrical conductivity. This means electricity can move through it easier, generating less heat.
Back in 2017, academics at the University of Central Florida estimated that graphene-based microprocessors would use 1% of the power needed to run a traditional microchip.
It’s like an electron goes from driving in a traffic jam to suddenly cruising down an open highway.
As an added bonus, these graphene-based chips take up less space and work faster.
Last year, Georgia Tech unveiled the first graphene semiconductor on silicon carbide.
This was a giant leap forward towards commercialization, which George Gilder believes is far closer than most people realize.
Yet, we can leverage graphene’s unique ability in a very practical way.
Heat sinks are devices that dissipate heat from electronics, keeping them from overheating.
Graphene-coated heat sinks radiate heat far faster and more efficiently, keeping electronics cooler and operating more efficiently.
This isn’t some future technology either.
Data centers have already begun incorporating this into their liquid cooling systems.
The demand for more efficient cooling solutions in data centers is only going to increase as AI and other data-intensive technologies continue to grow. With the global data center market expected to reach $517 billion by 2030, the potential for graphene-based cooling solutions is immense.
But it’s not just about keeping data centers cool.
The energy savings from graphene-based microprocessors and cooling systems could have a significant impact on the strained power grid.
By reducing the power consumption of data centers, we can free up capacity for other uses and help mitigate the risk of blackouts and power outages.
Moreover, the adoption of graphene technology in data centers could have ripple effects across other industries.
As the technology becomes more prevalent and cost-effective, we could see it being applied in a wide range of electronic devices, from smartphones to electric vehicles.
And this is where the real investment opportunity lies.
Companies that are at the forefront of graphene research and development stand to benefit greatly as the technology moves towards widespread commercialization.
But with so many players in the space, it can be challenging to know where to invest.
That’s where expert insights from industry leaders like George Gilder become invaluable.
In his latest report, George Gilder dives deep into the world of graphene, providing a comprehensive analysis of the technology’s potential and the companies that are leading the charge.
From startups developing cutting-edge graphene-based solutions to established firms incorporating the technology into their products, George Gilder’s report is a must-read for any investor looking to capitalize on the graphene revolution.
Don’t miss out on this once-in-a-generation opportunity.
Discover how this wonder material could transform the tech industry and your investment portfolio.
Click HERE to check out George Gilder’s latest report on graphene today!
