Podcast Summary: Motley Fool Money

Episode: For Data Centers, Power is the New Real Estate (Literally)

Date: January 13, 2026
Host: Emily Flippen
Guests: Anders Beiland, Dan Kaplinger

Overview

This episode dives into the accelerating boom in data centers—those essential backbone facilities powering AI and internet growth. The discussion explores why the “data center” story is now as much about energy and real estate as it is about technology, how big tech is responding, and where investors can find opportunities across the full data center value chain. The hosts highlight the tensions between skyrocketing demand, limited energy supply, and evolving investment plays—from the obvious hyperscalers to overlooked “picks and shovels” companies.

Main Discussion Points & Insights

1. Data Center Build-out: Demand vs. Supply

• AI is driving unprecedented data center expansion: Companies are aggressively pre-leasing capacity into 2027 and beyond, especially in "ground zero" markets like Northern Virginia (00:47).
• Fear of Overbuilding Is Overblown: Current data centers can’t meet demand, and build-outs are extensive and lengthy, not overnight efforts.
  • Dan Kaplinger: "Investors are reacting more to news of the planned deployment of future data centers than...about data centers that are currently on the ground...existing data centers...are not enough to take care of the current demand." (02:10)

2. Energy: The True Bottleneck

• Data center electricity use set to explode: IEA and Pew Research project global data center energy demand to double and U.S. AI electricity usage to rise 133% by 2030 (03:31).
• Big Tech securing energy at source:
  • Microsoft restarting Three Mile Island for nuclear energy, planning eventual switch to small modular reactors.
  • Amazon acquiring nuclear-powered campuses.
  • Google inking deals with independent nuclear providers like Nextera Energy.
  • Anders Beiland: "Nuclear is making a comeback a decade or so after Fukushima, but in a different form." (04:37)
• Energy is the new “real estate”:
  • Emily Flippen: "You can have access to all the physical real estate in the world...but if you don't have access to energy...you lack the power, you lack the influence to actually make your dreams...a reality." (06:26)

3. Beyond the Hyperscalers: Investment Opportunities Along the Value Chain

• Investors should look past the obvious: Many focus only on the data center operators—missing the vast supporting ecosystem that enables these buildouts (08:23).
• Value resides in infrastructure, power, equipment, and engineering companies.

Notable Quotes & Memorable Moments

• On the critical energy bottleneck:
  • "Power is the new real estate" (06:26, Emily Flippen referencing "House of Cards"), reframed to mean literal energy as the limiting factor for data centers.
• Big Tech’s energy moves:
  • "It's nuclear is making a comeback...in a different form" (04:37, Anders Beiland)
• Investor mindset warning:
  • "So many people stop...at companies physically building data centers and they don't get to the next degree...about the companies that are helping make data centers a reality." (08:23, Emily Flippen)

Timestamps and Segment Highlights

00:00 – 02:10 | Introduction & Setting the Scene

• Why data center build-out is top of mind for investors and consumers
• AI demand is straining existing capacity

02:10 – 04:37 | Is There Really Overbuilding?

• Analysis of current risks and realities in data center construction
• Overbuild fears are mostly about future (planned) capacity

04:37 – 08:23 | Energy as a Critical Constraint

• Mega tech's scramble for reliable, scalable power
• Nuclear energy’s resurgence for data centers
• Energy as the new “real estate” and limiting factor

10:02 – 13:45 | Investment Opportunities: Operators & REITs

• HPE (Hewlett Packard Enterprise) spotlight for its supercomputing/data center focus
  • Anders Beiland: “They build everything except the building… And despite this strong position, the stock is trading like an absolute bargain…” (10:27)
• Legacy “real estate” REITs pivoting to data centers:
  • Digital Realty Trust (DLR)
  • Equinix (EQIX)
  • Iron Mountain (IRM)
  • American Tower (AMT) (13:45, Dan Kaplinger)

16:00 – 22:04 | Picks & Shovels: Under-the-Radar Winners

• Ancillary players providing HVAC, power, infrastructure, and engineering services
• Examples:
  • Aon Inc. (AAON): Custom HVAC and thermal management for hyperscalers (16:00, Emily Flippen)
  • Sterling Infrastructure (STRL): Civil engineering, now designing concrete/data center pads (17:15, Dan Kaplinger)
  • Comfort Systems (FIX), EMCOR (EME): HVAC, refrigeration, electrical/plumbing for data centers
  • Stantec (STN): Canadian engineering/design, data center and infrastructure projects (18:52, Emily Flippen)
  • Schneider Electric: Power management gear (Square D), a French firm largely overlooked by U.S. media/investors (19:47, Anders Beiland)
    • "They also make power panels, switches—everything you need to get electricity from point A to point B in a data center." (19:47)

22:04 – End | Wrap-Up

• The breadth of data center investment avenues—beyond hyperscalers
• Reminder: Do your own due diligence; not all recommendations are right for everyone.

Final Takeaways

• Data center growth is relentless, with energy/power being the new choke point.
• Investment opportunities abound beyond tech titans: Real estate, power, infrastructure, and “picks and shovels” firms are critical, often undervalued contributors.
• Key advice for investors: Look past the obvious AI and data center leaders to the supply chain and support companies that quietly power this digital transformation.

Episode Highlights Table

| Timestamp | Topic | Companies / Notes | |-----------|------------------------------------------------------|---------------------------------------------------------------| | 00:05 | Setting the stage: Data centers' importance | AI, LLMs, CBRE vacancy rates | | 02:10 | Is there an overbuild? | Context on planned vs. completed facilities | | 03:31 | Energy impact & demand projections | IEA, Pew Research, U.S. 133% AI electricity usage growth | | 04:37 | Mega tech's shift to nuclear energy | Microsoft, Amazon, Google, Nextera | | 06:26 | "Power is the new real estate" | House of Cards reference, bottleneck analysis | | 10:27 | Public market plays: Hardware & REITs | HPE, Digital Realty Trust, Equinix, Iron Mountain, AMT | | 16:00 | Picks & shovels companies | Aon, Sterling Infrastructure, Comfort Systems, EMCOR | | 18:52 | Additional plays: Hidden Gems and Rule Breakers | Stantec, Schneider Electric, Square D | | 22:04 | Wrap-up & investor reminders | Broad opportunity, reminder on research & recommendations |

For those seeking actionable ideas or a high-level understanding of the evolving landscape, this episode underscores that the “data center” story is as much about energy, infrastructure, and picks-and-shovels as it is about racks of servers and AI models.