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Northland Power Inc. (NPI)
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Capital Power Corporation (CPX)
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Pure Storage Inc. Class A (PSTG)
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Vertiv Holdings LLC Class A (VRT)
Q: Morning,
I recently acquired some information about a new project development in Alberta. A European private equity company has purchased 5 out of 6 quarters of land along the corridor from Edmonton to Calgary(I know this part for a fact). They are going to invest 1 Billion on each quarter of land for Data Centers. Apparently Alberta has a great amount of Dark Fiber Optics available which is perfect for this.
Do you see any investment opportunities here? I assume these Data Centers will need a huge amount of power, so would power producers be an area of opportunity? Such as CPX . Let me know what you think and any ideas.
I recently acquired some information about a new project development in Alberta. A European private equity company has purchased 5 out of 6 quarters of land along the corridor from Edmonton to Calgary(I know this part for a fact). They are going to invest 1 Billion on each quarter of land for Data Centers. Apparently Alberta has a great amount of Dark Fiber Optics available which is perfect for this.
Do you see any investment opportunities here? I assume these Data Centers will need a huge amount of power, so would power producers be an area of opportunity? Such as CPX . Let me know what you think and any ideas.
5i Research Answer:
It is a hard question without knowing which companies might win tenders for construction, etc. Power companies (CPX, NPI) should see incremental benefit, but it may not be material enough to move the needle, especially if spread out over a period of years. Data storage or hardware companies such as PSTG or VRT could win some business, but based on their current run rate the amounts are not likely to be material to their businesses.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VRT.