r/valueinvesting
Data centers - what's underneath
Author shares an AI-generated interactive breakdown of data center supply chains, costs, and market size to aid fundamental analysis.
- Provides a structured visualization of the data center value chain, helping investors identify key beneficiaries beyond just chipmakers.
- Highlights the massive capital expenditure required for infrastructure, supporting the long-term growth thesis for construction and utility partners.
- Offers a scalable market size calculator, allowing for dynamic assessment of total addressable market based on deployment rates.
- The analysis relies heavily on AI-generated data without cited primary sources, raising concerns about accuracy and potential hallucinations.
- Focuses on aggregate industry trends rather than specific company moats or valuation metrics, limiting direct stock-picking utility.
- High infrastructure costs may lead to margin compression for operators if AI monetization does not scale as quickly as capacity expansion.
Last week I published a post about the chip and related companies in 3d - today - Data Centers
Well, the idea was that if data centers where something you:d pickup in a supermarket, then you'd turn it to the back, look at the sticker to see what the thing is made of, then this is what'd you see.
So basically to give people intuition about that "data center" product.
So what can you see there?
- A map of current and future data centers
- When you build a data center - related companies
- Costs of a data center (diff sizes) and the distribution of where that money goes - to which company - you can take a guess which company is leading that chart.
- Different scales of data centers, I put a person there just to get some perspective
- a calculator that shows the market size as a function of how many data centers are going to be picked up from the supermarket
Clarification because I did get a lot of DMs:
\- Most of the data and writing was done by AI. I ran about 200 agents to gather the data and basically curated it so it looks ok.
I hope you like it and please feel free to give me harsh feedback
The map is missing more than 99% of the data centers globally.
I would suggest you remove it unless you can map the majority of them
Thanks for the feedback..