Natural gas turbines are in high demand, causing a bottleneck for AI data centers until around 2032. Applied Digital is turning to boilers and steam turbines powered by natural gas to deliver AI computing capacity 3-4 years earlier. Revenue for Applied Digital soared 250% year over year to $126.6 million, with plans to provide 400 MW of total capacity for CoreWeave. The company is also in advanced discussions for 900 MW of capacity and aims to increase capacity to 5 GW over the next five years. Applied Digital’s innovative solution could give them a competitive edge in the AI data center market.

Tech giants are exploring solutions to the power generation bottleneck for AI data centers, with some considering nuclear power and others using gas turbines or retired commercial aircraft engines. However, a shortage of gas turbines is limiting the expansion of data centers, with customers potentially waiting 7-8 years for new turbines. Applied Digital is looking to the past with Babcock & Wilcox to deliver 1 GW of power using steam turbines, set to come online in 2028. By leveraging century-old technology, Applied Digital may be able to bring AI data centers online earlier than competitors.

Investors should consider the innovative approach Applied Digital is taking to address the power generation challenges faced by AI data centers. With a potential competitive advantage in the market, Applied Digital’s stock may be worth watching for future growth. Analysts suggest looking into the 10 best stocks for investors to buy now, with Applied Digital not currently on the list but still showing potential for future success.

Read more at Nasdaq: Applied Digital Just Solved AI’s Biggest Bottleneck with Technology From the 1800s