AI数据中心建设潮：石灰水泥钢材等基础材料投资机会

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Hey, listen. We've talked a lot about the AI build, a roughly $1 trillion wave of capital spending time tied to artificial intelligence going on overall. In June, Bloomberg reported spending on data center construction in the US eclipsed 50 billion in April for the first time according to Census Bureau figures that were uh published at the time. Someone who is seeing this and watching it from a different perspective because it's not just about semiconductors, although that is a big part, but also things like lime, potach, se uh cement, steel, lots of different things.

Back with us to talk about it is Katherine Thompson, founding partner and CEO at Thompson Research Group. It's an equity research and advisory firm that focuses on companies in the industrial and construction uh spaces spaces. She's with us from Nashville. So good to have you here. Thanks for your patience. A lot coming at us today as we

as is always the case. Tell us about the build and the things beyond semiconductors and the typical technological components that go into data centers. But that what you are focusing on that are needed as well for this buildout.

Yeah. So, you know, for since the end of World War II, a lot of the focus has been on the consumer leading the economy, but we're having a total flip-flop with this now, and it's uh re-industrialization, which you and I have talked about, but obviously this data center build. So, you're seeing a lot of really sleepy old world type industries, a few that you mentioned. Um but to put this into perspective for size the buildout for data center and AI will eclipse the total spend of interstate buildout electrification US and the early buildout of rails.

So what are the different categories? Um you have lime. So when you're building that data center, you have to actually stabilize the soil. And so you have no one thinks about lime. Uh but that is you can't even put a foundation on unless you have the soil stabilized. Then you've got water infrastructure. You got to do um pre-cast pipes for that. Then there's actual laying foundation. Then you actually have the steel that's part of the the structure of a building.

So there's a lot of these oldw world industries that before you even see any rack, you're dealing with a lot of really basic materials.

Okay. Can the supply chain handle this? Are there enough of these basic materials in the US ready to be deployed for this multi- trillion dollar buildout?

Yeah, you know, a great question. Um, and it really depends on where you are. And it's by no surprise there's certain states and certain areas who are seeing more data centers that do have more access to things. I know it sounds so so basic, but having access to land and having access to cement and rock is so basic. Texas is the biggest producer of cement in the US and so that is, you know, definitely will help them. the areas where it gets it can get tougher um can be more the the rare earth or rare metals and some of that are going to chips.

But as far as steel we feel good about um cement could get tight but oddly enough it'll get tight if consumer if if residential returns but right now we seem to be okay

but um watch out if you have any recovery in on the resi side. So, you know what's interesting? I think about my first kind of foray almost into business news and it was a mutual fund show and we would look at things that were going on in the news and basically what mutual funds how do you target it and sad to say when there was a disaster. We talked about cement companies or what was need for for a build lead us to what companies Katherine I think CMC is a ticker um that is definitely on your radar.

The company is a commercial metals company. It's down about 5% in today's session. Stocks down about 2.5%. Uh it's not quite but close to a $7.5 billion market cap company. It's a steel producer. Yeah. So they originally were steel producer but they're really done a really interesting um uh transformation of their company where they're looking at setting up the early stage of construction solutions. So what that is is like I said earlier they have a grid product that um helps stabilize.

They're doing the rebar which is an important part of laying the concrete foundation and then along with that they'll have a solution that they do pre-cast concrete products for wide array of of needs. All of those will be needed um at these type of data center sites and they are already doing it now. I mean in their investor day recently they just outlined a solution as for a $17 billion uh semi um conductor uh plant buildout and they were providing all of those solutions.

It's not sexy but it's needed.

Hey

and this is an interesting company in that not just about metals but they're providing solutions now.

This is a market where we see rotation where it's not all about the sexy names. No, but actually if you look at the best performing groups in the S&P 500, semiconductors are up there, but the steel index is up almost 45% year to date. You know, uh heavy electronics, construction and engineering, these are like the sub indices.

Is is the trade already behind us or are there specific areas, specific names that you still are seeing good value?

You know, I I think CMC is a good one. um Worththington Enterprises, you know, they've had a variety of different companies specific headwinds, but they could provide a really great value. Uh and they are also, if you think about the big metal tanks for the gases and that are needed, but also super basic um steel studs and ceiling tiles. Um they make uh all of that grid and it's going to be needed for these projects.

So, that's a great name. And then finally, it's like super basic, but rocks. Um, Martin Marietta Materials. Not only do they produce crush rock, but that lime I was telling you about earlier, they um are just in the process of buying Lis North America, which is the largest producer of lime in the US. So, there's a couple of different ways you can do it. And I think they're they're actually really interesting values right now.

We always love where you go. Uh, it just reminds us of the wider world that's out there. And just also when it comes to AI trade, um, it impacts a lot of different sectors in our world, but also in our marketplace. Katherine, thanks again and thanks again for the wait as we, uh, follow what was going on in the White House. Always appreciate it. Katherine Thompson, she's founding partner and CEO at uh, Thompson Research Group, joining us from Nashville.