Layer 8 — Power generation & energy supply
Position in the die→grid hierarchy: outside the fence.
Where the power comes from: gas turbines and reciprocating engines behind the meter, fuel cells, nuclear PPAs and SMRs, the utilities and IPPs signing data-center deals, renewables, storage, transmission, and the gas supply chain.
Layer 8 covers everything that turns fuel, fission, or sunlight into electrons before those electrons ever reach a data center's fence line — generation hardware, the utilities and IPPs that contract for it, the transmission and interconnection equipment that moves it, and the gas supply chain that feeds onsite turbines and engines. It hands off to Layer 7 (electrical distribution from the meter to the rack) and Layer 6 (facility cooling), and it sits furthest from the chip of any layer in the taxonomy — which is also why it is the least differentiated: most of this equipment was designed for the broader grid and power industry long before AI load growth, and data centers are simply a new, large, fast-moving customer standing in line behind utilities, industrials, and export terminals. The chain runs from primary energy (gas fields, uranium, sun, wind) through conversion hardware (turbines, engines, reactors, panels, inverters) to the wires and switching gear that carry the output to a site, with utilities and IPPs as the commercial layer that ties generation to a signed data-center deal. The investable choke points cluster at the front of long lead-time equipment queues: gas turbine and HRSG order books, large power transformer and HVDC equipment backlogs, and the handful of firms qualified to build advanced reactor components or enrich fuel. Nuclear and fusion PPAs are optionality bets on entities with long, uncertain timelines rather than near-term revenue. Renewables and storage hardware are comparatively commoditized and price-competitive globally, while transmission EPC and grid-equipment names benefit from a buildout that would be happening with or without AI, just on a longer timeline.
Parts in this layer
- 8.01 Gas turbines (onsite / behind-the-meter) & HRSGsconstrained · 12 companiesCombustion turbines burning natural gas (or dual-fuel), paired with heat-recovery steam generators, used to generate power onsite or behind the meter at a data center campus.
- 8.02 Reciprocating engines & engine microgrids · 13 companiesDiesel, natural-gas, or dual-fuel reciprocating engines assembled into modular microgrids for onsite or bridge power at a data center site.
- 8.03 Fuel cells · 6 companiesFuel cells, chiefly solid-oxide units, that generate electricity electrochemically from natural gas or hydrogen without combustion, deployed as onsite or behind-the-meter power.
- 8.04 Nuclear: existing fleet PPAs & restarts · 13 companiesPower purchase agreements with existing nuclear plant operators, including deals that fund restarts of previously shuttered reactors, to secure firm, carbon-free power for AI load.
- 8.05 SMRs, advanced reactors, components, fuel · 40 companiesSmall modular reactors and other advanced reactor designs, plus the components, fuel, and enrichment supply chain that would build and run them.
- 8.06 Fusion (long-dated PPAs) · 9 companiesLong-dated power purchase agreements with fusion developers, none of which have yet demonstrated commercial electricity generation.
- 8.07 Utilities, IPPs & power providers signing data-center deals · 52 companiesUtilities, independent power producers, and grid operators that sign the power purchase agreements, interconnection contracts, and generation deals underlying a data center's supply.
- 8.08 Renewables & long-duration storage hardware · 36 companiesSolar, wind, geothermal, and hydro generation hardware, plus long-duration energy storage, contracted or co-located to supply data-center power.
- 8.09 Transmission, interconnection & grid equipment · 54 companiesHigh-voltage transmission equipment, interconnection hardware, grid-enhancing technology, and the EPC firms and developers that build and expand the grid feeding a data center site.
- 8.10 Gas supply chain (for onsite generation) · 33 companiesPipelines, producers, compression equipment, LNG and virtual-pipeline logistics, and metering that supply natural gas to onsite generation.
Public plays in this layer
Listed companies with the most part placements in layer 8. Placement count is breadth, not revenue exposure.
| Company | Ticker | Parts here | Price | Mkt cap |
|---|---|---|---|---|
| Siemens Energy | ENR.DE | 5 | 150 EUR | 127.8B |
| GE Vernova | GEV | 5 | 954 USD | 254.0B |
| Southern Company | SO | 3 | 89.05 USD | 102.4B |
| NextEra | NEE | 3 | 83.47 USD | 174.1B |
| AEP | AEP | 3 | 123 USD | 66.8B |
| Xcel | XEL | 2 | 77.16 USD | 48.2B |
| Vistra | VST | 2 | 140 USD | 46.9B |
| Talen | TLN | 2 | 305 USD | 14.6B |
| Rolls-Royce | RR.L | 2 | 1530 GBp | 12.62T |
| Prysmian | PRY.MI | 2 | 124 EUR | 36.1B |
| Nexans | NEX.PA | 2 | 143 EUR | 6.2B |
| Mitsubishi Heavy Industries | 7011.T | 2 | 4032 JPY | 13.55T |
| Kawasaki Heavy | 7012.T | 2 | 2615 JPY | 2.28T |
| Entergy | ETR | 2 | 106 USD | 49.7B |
| Duke Energy | DUK | 2 | 121 USD | 94.2B |
| Doosan Enerbility | 034020.KS | 2 | 85500 KRW | 54.65T |
| Dominion | D | 2 | 66.50 USD | 58.5B |
| Constellation | CEG | 2 | 282 USD | 100.1B |
| Caterpillar | CAT | 2 | 817 USD | 375.6B |
| Cameco | CCJ | 2 | 106 USD | 46.3B |
| Baker Hughes | BKR | 2 | 62.11 USD | 61.7B |
| Ameren | AEE | 2 | 107 USD | 29.6B |
| Williams | WMB | 1 | 74.19 USD | 90.7B |
| WEG | WEGE3.SA | 1 | 50.25 BRL | 210.8B |
| WEC | WEC | 1 | 106 USD | 34.6B |