AI’s Billions: A Spot of Investing, Darling?

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One rather gathers the artificial intelligence industry has been experiencing a bit of a moment. It’s all frightfully modern, of course, and one does try to keep up. But even a cynic can’t ignore the numbers. Analysts at that perfectly respectable firm, Ark Invest, predict spending on AI infrastructure – mostly these enormous, rather vulgar data centers – will swell from a mere $500 billion last year to a positively dizzying $1.4 trillion by 2030. JPMorgan concurs, which is always reassuring. A growth rate of over 20% annually? It’s almost vulgar, but undeniably…interesting.

Naturally, everyone is scrambling for a piece of the action. One suspects Nvidia and its hardware brethren are already feeling a trifle smug, but their most spectacular growth days are likely behind them. The real opportunity, my dears, lies with those actually building these digital fortresses. It’s terribly mundane, really, but that’s where the money is.

Let’s have a look at a few possibilities, shall we?

1. Vertiv

Vertiv isn’t precisely a data center company, but it’s becoming frightfully important to them. These AI installations generate an unconscionable amount of heat, you see. Early attempts at cooling involved fans and air conditioning, which was all very well for a modest adding machine. But now? It’s a crisis of thermodynamic proportions. Global Market Insights predicts the data center cooling market will expand at over 10% annually, driven by liquid cooling. Rather clever, really.

Vertiv is at the forefront of this. They’ve unveiled a new modular liquid-cooling solution, the “MegaMod HDX,” which combines liquid and air cooling. It’s frightfully technical, but it allows data center operators a degree of flexibility they desperately need. And they don’t just do cooling, you know. They offer power management solutions – battery storage, distribution – all frightfully efficient. Their top line is up nearly 30% this year, with profits more than doubling. One suspects they’ll continue to do rather well for themselves.

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2. Digital Realty Trust

Digital Realty Trust isn’t exactly setting the world alight with rapid growth, but that’s perfectly alright. It’s a Real Estate Investment Trust – a REIT, for the uninitiated – which means it owns data centers and rents them out. It’s dreadfully reliable, you see. They serve over 250 Fortune 500 companies, generating nearly $1.6 billion in revenue last quarter – up 10% year over year. They’ve managed 20 consecutive years of top-line growth, which is rather impressive, even if it’s not terribly exciting.

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But the real attraction is the dividend. It’s grown steadily for decades, offering a solid 3.1% yield. A reliable income stream in a market that isn’t known for them. It’s not glamorous, but it’s terribly sensible.

3. Nebius Group

Finally, we have Nebius Group. A touch more speculative, wouldn’t you say? They own data centers specifically for AI developers. Their top line grew by a staggering 355% last quarter to $146 million, but they also managed to increase their losses from $44 million to nearly $120 million. A touch…unbalanced, perhaps?

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However, they recently secured a multi-billion-dollar deal with Microsoft to provide AI infrastructure services. Why Microsoft chose Nebius is a mystery, but it suggests they see something others don’t. Shares soared on the news, but have since retreated. Analysts remain bullish, predicting a 70% increase in share price. It’s a gamble, certainly, but one with a potentially handsome payoff. Though, one must be prepared for a touch of volatility.

There you have it. A few possibilities for those inclined to dabble. One trusts you’ll make sensible decisions. After all, darling, one can’t be too careful with one’s money.

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2026-01-27 11:32