The Algorithm’s Shadow: Unexpected Fortunes

The names resonate, of course: Nvidia, Microsoft, Meta Platforms, Alphabet. They have become the visible manifestations of the so-called AI ‘megatrend’, their valuations ascending on a current of speculative fervor. One observes the escalation with a certain detached curiosity, as if witnessing the inflation of a particularly elaborate bubble. It is, however, in the obscured corners, in the spaces between the pronouncements and the projections, that the truly… interesting developments occur. The opportunities, one suspects, are not where everyone is looking.

The following are not recommendations, precisely. Rather, they are observations. Accounts of entities that, through a series of almost accidental alignments, find themselves positioned to benefit from this relentless march of the algorithm. Their success is not guaranteed, naturally. Nothing is. But their obscurity offers a… degree of insulation. A temporary reprieve from the scrutiny of the market.

Brookfield Corporation

Brookfield Corporation (BN +1.22%) is, on the surface, a purveyor of conventional investments: real estate, infrastructure, the predictable churn of capital. Yet, within this facade of normalcy, a more peculiar ambition takes root. They speak of a $7 trillion opportunity in AI infrastructure. A sum so vast it seems less a calculation than a… decree. The launch of their Artificial Intelligence Infrastructure Fund is not a declaration of intent, but the formalization of a process already underway. An acquisition of assets, they claim, up to $100 billion. The logic is opaque, the scale unsettling. Radiant, a cloud services company in which they hold a stake, is but a single node in a network whose ultimate purpose remains… undefined.

The investments extend beyond mere computation. Renewable energy, to power the insatiable hunger of the algorithms. Data centers, vast and anonymous. Semiconductor fabrication facilities, the very heart of the machine. It is a comprehensive undertaking, a total immersion. And one wonders, not whether they will succeed, but what will remain when the undertaking is complete. The fund is merely a prelude, a bureaucratic formality before the true expansion begins.

Prologis

Prologis (PLD +0.31%) deals in logistics. Warehouses. The mundane architecture of commerce. Yet, they are venturing into the construction of powered building shells, preparing for a future in which the flow of data eclipses the flow of goods. Their expansion into data centers is not a strategic pivot, but a natural consequence of their existing expertise. They see a ‘generational value creation opportunity’ – a phrase that evokes a chilling sense of inevitability.

Billions are allocated to development projects, megawatts of power capacity secured. A pipeline of 5.7 GW, with plans for 10 GW more. The numbers are presented with a clinical detachment, as if describing the growth of a particularly efficient fungus. The potential for shareholder value is quantified, of course. $7.5 billion to $25 billion. But one suspects the true measure of their success will not be monetary, but something… less tangible. A subtle shift in the balance of power.

NextEra Energy

NextEra Energy (NEE 0.31%) is a purveyor of electricity, a master of the grid. They are also a leading producer of renewable energy, a pioneer in battery storage. They have positioned themselves as the preferred partner for technology companies seeking to secure power supplies for their AI data centers. A 2.5 GW contract with Meta Platforms. A collaboration with Google to restart a dormant nuclear power plant. The details are presented as if they were inevitable outcomes of natural forces.

They are also developing data center campuses in collaboration with other companies. A 1.2 GW gas plant to power a facility. The arrangements are complex, the motivations opaque. One suspects they are not merely providing power, but participating in a larger, more inscrutable process. A silent agreement, a shared understanding. The energy flows, the algorithms churn, and the world continues to spin, oblivious to the forces at play.