Postcards: Are You Listening Yet?

This is beyond the next-trillion-dollar trend. This is going to be the entire economy if this doesn't slow down, worth a level of GDP that we didn't quite fathom. ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more You are a free subscriber to Postcards from the Florida Republic. To upgrade to paid and receive the daily Republic Risk Letter, [subscribe here](. --------------------------------------------------------------- [Postcards: Are You Listening Yet?]( This is beyond the next-trillion-dollar trend. This is going to be the entire economy if this doesn't slow down, worth a level of GDP that we didn't quite fathom. [Garrett {NAME}](floridarepublic) Sep 25 floridarepublic   [READ IN APP](   Before we get started, [I’m asking readers to sign up for Postcards from the Republic]( Finpub.com. It’s a quick signup… and we’ll send you the latest report on midstream AI when we wrap it… even if you’re not a member of Republic Risk. [Join me here]( FOR FREE, offer feedback, and get your free report at the start of October. --------------------------------------------------------------- Dear Fellow Expat: Remember when "tech" and "energy" were different sectors? Those days are over. Gone. AI is rewiring our energy landscape, and it's doing it with surprising environmental benefits. This isn't just another tech trend… It's a Silicon Valley-dealing, energy-stealing, Profit-revealing… Big bang! Son of a gun! WOOOOOOOO! Let’s break down this trend in four easy bites. [Upgrade to paid]( 1. AI is Hungry for Power AI needs lots of electricity. It’s like a monster… and it won’t stop eating. By 2026, it might use twice as much as now. That's huge! The International Energy Agency (IEA) says so. This means our power grids are under pressure. We need to find ways to meet this demand without hurting the planet. Data centers, which make AI possible, are growing fast. But they're running out of power, water, and land. By 2026, they might use over 1,000 TWh of power. That's double what they use now. The U.S. alone may need 38 gigawatts of new power. That's like building 34 new nuclear plants. This is big, folks. Really big. Bloomberg reported this morning that OpenAI proposed to the Biden administration the construction of massive data centers. How big? So big that each would consumed as much power as an entire city. The company took the Cold War approach, arguing that such a boost its necessary to advance AI technology and maintain America’s competitive edge over China. In a city full of people who love war spending, it probably went over well. After the meeting, OpenAI CEO Sam Altman gave document to officials. This specific document called for building building 5-gigawatt data centers across various U.S. states. To put it in perspective, 5 GW puts out as much power as five nuclear reactors generates enough juice for 3.75 million homes. This isn't just growth; it's a fundamental restructuring of the American energy s 2. Energy Companies Are Cashing In The power sector is booming in 2024. AI companies are grabbing all the electricity they can. It's bad news for regular folks facing higher bills, but great for investors. Constellation Energy (CEG) is reopening Three Mile Island just to power Microsoft's AI. Their stock is up 30% in a month. Microsoft also made a $10 billion deal with Brookfield Asset Management (BAM) for clean energy. This deal will create as much power as 10 nuclear plants. It shows how important Brookfield is in powering AI centers in a green way. 3. Who's Winning in This New World? Who should you be watching right now? Well, it’s about thinking about the risks and exposure that you want to take. But here’s an easy watchlist. Natural gas from the Permian will provide lots of power - and have safer, more stable operations. Meanwhile, Bitcoin operators with lots of debt and a pivot into hyperscaling, they might have the most risk, but also the most upside. Take a look: - Natural gas producers: Chevron (CVX), Kinder Morgan (KMI) - Utilities with gas plants: NextEra Energy (NEE), Dominion Energy (D) - Tech companies making efficient AI hardware: NVIDIA (NVDA), Advanced Micro Devices (AMD) - Data center companies: Equinix (EQIX), Digital Realty Trust (DLR), Brookfield Asset Management (BAM) - Bitcoin miners moving into AI: Marathon Digital (MARA), Applied Digital (APLD) - Big AI companies: Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN) 4. This Is Your Chance - Act Now! This isn't just another market trend. It's a huge change that will affect everything. And we’re only in the early innings. People who see this early could make a lot of money. We're working on a special report about this subject that will come out next week. It will tell you exactly what to do to make the most of this chance. All Republic Risk members will get it soon. Don't miss out on this once-in-a-lifetime opportunity. Stay tuned, and get ready to act fast! [Upgrade to paid]( Stay positive, Garrett {NAME} Secretary of Finance P.S. If you're confused about any of this, don't worry. We're here to help. Just remember: AI needs a lot of power, and that's creating big opportunities for investors like you. We’ll circle back on this subject on Sunday in our first issue of K Street Confidential. Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. Under company rules, editors and writers cannot recommend their positions. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.   [Like]( [Comment]( [Restack](   © 2024 Garrett {NAME} 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()