America’s electricity supply is becoming increasingly strained…

As of March, the U.S. has 5,426 artificial intelligence (“AI”) data centers. That’s up from about 1,000 in 2018.

As you’re probably aware, data centers are gluttons for energy. In 2022, they consumed about 17 gigawatts (“GW”) of power. (For reference, the Hoover Dam only produces about 2 GW per year.)

But the power has to come from somewhere. Today, it’s being pulled from American homes.

Last year, a study by Bloomberg and Whisker Labs found that U.S. power supplies are being “distorted” by electricity-hungry data centers. It sounds like the plot of a sci-fi movie, but it could cost the U.S. billions of dollars if nothing changes.

And there’s only one technology that can fix it…

Electricity travels in waves. And the quality of the wave is important.

Home appliances rely on smooth, predictable waves that deliver steady voltage.

But as the grid gets strained, the waves become unsteady. This condition is known as “bad harmonics.”

Bad harmonics continuously damage whatever’s plugged into the grid. Over time, devices lose efficiency until they eventually break. And it can even cause blackouts and electrical fires.

And no one is immune…

The Bloomberg study found that homes within 20 miles of a data center experience the worst distortion. But with 90% of U.S. homes within half a mile of a data center, the risk is widespread.

Once electricity starts to distort, only one thing can restore harmony: more energy capacity.

But neither conventional nor renewable energy can keep up…

AI Can’t Scale Without Batteries
AI draws massive amounts of power in short, unpredictable bursts… sometimes for milliseconds at a time.

Coal, fossil fuels, and nuclear sources can supply steady baseline power. But they can’t ramp up to meet these demand spikes. And wind and solar are too intermittent to do the job.

Plus, these energy sources have fixed locations. The farther a data center is from a pipeline or wind farm, the more it must rely on the grid – and the worse harmonic distortion becomes.

But one energy technology can help fix data-center distortion: batteries.

Batteries can sit anywhere in the energy supply chain – from distributors to data centers. And they can both absorb and release power.

That makes them ideal buffers for AI’s volatile demand cycles. Take a look…

Battery systems can bring distorted electric waves back into harmony. And as distortion gets worse, these businesses are set to soar.

Battery companies are a little-known way to invest in the AI data-center build-out. As the build-out accelerates, these companies could see a wave of new growth.

Don’t get left behind… Consider buying battery stocks today.

Good investing,

Sean Michael Cummings

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Source: Daily Wealth