Big Tech's $1T Gamble

Over a trillion dollars are going into American data centers in the next five years. 

That’s the prediction from Blackstone Inc, which itself holds over $80B worth of data center related assets, and it's not a bold one.

This is one trend that can be seen a mile away.

The biggest names in tech, including Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), Alphabet (GOOG), NVIDIA (NVDA) and Apple (AAPL), with a combined market capitalization exceeding 50% of the U.S. GDP, have earmarked hundreds of billions for data centers in just the next couple years.

Data Centers are the superhighways for our uploaded and downloaded data, and without steady growth in capacity, we are headed for trouble. 

Right now, the entire world relies on quick, reliable data transmission functionality, and today, that’s precisely what we have. 

Data Centers: Where The Cloud Actually Lives

You’re reading this article, you’re getting texts and emails, you’re watching, uploading and downloading video. 

It’s all so seamless and consistent that you take it for granted, and every year, the volume of data you personally consume or create increases. 

The problem is that everyone else is doing the exact same thing, including businesses, banks, our government, and all of its branches and tentacles. 

As a result, daily data transfer volume has grown by a factor of over 400 million since the turn of the century.

At the moment our data centers, where all the servers that move this information reside, are doing an adequate job. 

But the second those assets are overwhelmed, calamity will ensue. 

Overusage of the powergrid results in blackouts, and the same will hold true for the flow of information–not if, but when we exceed data center capacity. 

Data Blackouts Will Be A Thing, Unless…

That’s why that $1T is absolutely necessary if we’re to keep our day to day internet usage trending the way it has been for decades now. 

Unfortunately, even that massive allocation may not be enough in the long run. 

By the end of the decade, our daily data volume is projected to hit 10x of where it is today — growth so extreme that keeping up with the increased energy demands alone may not be feasible. 

Not if we’re just talking about scaling current technology up along with demand. 

But what if we could take existing data centers, and make them more efficient, and much, much faster?

That would transform this mad scramble for survival into an opportunity to rise to the next level. 

Crisis Brings Opportunity. Enter The Optical Interposer

Right now, just such a technology is starting to come on the scene, and chances are very good that it will go down in history as nothing less than the next transistor. 

This technology is referred to as the optical interposer, and its function is fundamental: it transfers information from one machine to another. 

Such interactions take place trillions of times each day in every major data center worldwide, and right now, they’re facilitated by components known as copper interconnects. 

Copper, like all metal, generates electrical resistance, and with it heat, which increases inefficiency even more. 

Optical interposers rely on light, not electrical impulses to transmit information, making electrical resistance irrelevant. 

Speed and bandwidth are also dramatically increased, allowing as much as an 8x improvement in overall data flow within a given facility. 

Everything Goes Up… Except The Power Bill

But not everything increases. Energy demand, for one, remains the same, and that’s a huge deal in a sector that will require $50B in energy infrastructure investment just to sustain itself. 

Optical interposers are without a doubt a game-changer. And right now, one company based in Toronto is taking steps to control the global market for these components. 

A few weeks ago, this company acquired a Chinese electronic component manufacturer just to tighten its grip on production. 

Very soon, huge new data center complexes like the kind Facebook recently opened in New Albany, Ohio, will be thirsting for these components.

The Toronto-based company that will be supplying big tech with these vital new devices is one you’ve likely never heard of before. 

They’re quiet, focused, and fairly small with a market capitalization of just a few hundred million dollars. 

In five years, that valuation could easily be in the tens of billions as the data center golden era takes hold. 

Want to learn more about it now, before the retail investors get wind of this?

I would if I were you, because it could be the most explosive story to hit the tech industry since the advent of the microprocessor. 

Get a jump on this, by getting all the relevant information, right here.