Jim Cramer says the data center trade is under attack. Here’s who could benefit
CNBC's Jim Cramer said Monday the data center trade isn't dead, but its next wave of winners could look very different.
TL;DR
- The data center trade, previously a strong investment theme, is facing challenges from politicians and communities.
- Concerns over electricity costs, water use, and other factors are leading to stricter requirements for data center development.
- The pace of data center buildout is becoming less certain, potentially impacting valuations of companies like GE Vernova, Micron, Sandisk, Western Digital, and Seagate.
- Hyperscalers like Amazon, Alphabet, Microsoft, and Meta are expected to benefit due to their financial capacity to meet new regulations.
- Reduced competition from speculative developers could lower costs for hyperscalers in building AI infrastructure.
- Political pushback is seen as an advantage for hyperscalers, positioning them as the likely winners in the evolving data center landscape.