The Data Center Crisis Summarized In 1 Word

Dear Reader,

As you read this, the global tech sector is embarking on a transformation no less profound than the switch from horse-drawn to internal combustion power. 

Let me explain. 

At the heart of every data center lies an electronic component which both facilitates, as well as limits the one function every data center exists to perform — the movement of information. 

Electronic interconnects, pictured above, allow for digital information to move from machine to machine.

It’s what keeps our modern world going. It’s what allows us to send emails and texts, it’s what brings us the internet and all the media that comes with it in all of its forms. 

Electronic interconnects, to put it plainly, are the fundamental building blocks of the highway upon which our collective flow of data travels. 

It All Comes Down To One Word… Resistance

Without them, everything stops. 

However, all of that comes at a price. Electronic interconnects use copper wiring, and just as it is with any situation where electrons flow through metal, that wiring produces resistance, which produces heat.

Every calorie of heat produced represents lost energy, and the loss rate only accelerates with the flow of data, thus increasing energy consumption in an ever-steepening curve. 

This progressive heat buildup also limits bandwidth — a problem which can only be solved by building bigger data-centers with more servers.

All of that has been a growing concern for years, but recently, with the emergence of the biggest bandwidth hog ever–artificial intelligence–the concern has reached panic levels. 

That’s where we are today. Because our thirst for data continues to grow steadily, the big tech empires which allow us to create and manage all this data, are working overtime to keep up. 

Brute Force Will Only Take Us So Far

More than $400 billion in spending by the top five tech firms in the world has already been earmarked for the next decade, as our collective data transmission rate climbed to 10x of where it is today. 

Unfortunately, even these titanic expenditures will not be enough to keep up with rising data usage. 

The energy requirements alone create a bottleneck, and companies like Microsoft, Apple and Alphabet are taking drastic steps, including planning their own nuclear power plants, just to keep the data flowing. 

Then there is property and construction cost and years-long timelines on getting new facilities up and running. 

All the while, the demand for data flow just marches on.

Without a paradigm-changing solution — one as significant as going from animal power to internal combustion power, for example — we are headed for a crisis. 

Enter the photonic interposer. 

It's The Next In Line After The Transistor, The Integrated Circuit and The Microprocessor

As the name suggests, this device uses photons and not electrons.

Using light instead of electrons to move information solves the problem of resistance. 

Light moves through fiber-optic cables with near perfect efficiency. It can move vast distances without signal degradation. It has bandwidth capabilities orders of magnitude higher than what's possible with metal wires.

Put all that together, and a data center equipped with photonic interposers will do up to 8 times the work of a similar sized data centered powered by traditional interconnects. 

And it will do that work without consuming any extra energy. 

This leap in productivity is precisely the world-changing innovation that big tech is looking for. 

Without it, we simply cannot progress on our current path. The AI revolution will come to a screeching halt. And some of the world's biggest, wealthiest companies may face collapse. 

Yes, it’s that critical. 

Talk About Market Positioning… $12T in Market Capitalization Can't Survive Without It

Right now, one company stands at the convergence of all of these forces. 

Fierce competition between the biggest tech brands in existence, exploding demand, the rise of AI… All of it will depend on a single invention being developed at one relatively quiet Toronto-based electronic component maker. 

Few have heard of this company, and it makes sense. It’s less than 1/1000 the size of many of its prospective clients. 

And yet without it, trillions in market capitalization are at risk. 

That spells opportunity, which is why several weeks ago I profiled this company for my premium readers. 

Today, I’m sharing this same information with you, because it’s simply too important to keep this a secret any longer. 

I typically profile microcaps, but for this company, which is now in smallcap territory, I’ve made an exception. 

The reason is simple. My intent in focusing on microcaps was to target the biggest growth opportunities available on the open markets. 

This company, while 10x bigger than many of my other stocks, has growth potential as big as I’ve ever seen, from any company. 

That’s why it’s still a fit and worthy of your attention. 

Get your due diligence started right here, right now.