Hello, Reader.
Nearly half of Americans planned to travel this summer, according to a Bankrate survey conducted earlier this year. And August is generally considered a peak travel month.
So, I can only assume many of you have already visited a new destination over the last few weeks… or are eagerly awaiting one soon to come.
In that summer spirit, let’s take a trip today…
All the way to Narvik, Norway.
Located in the northern heart of the country, Narvik is known for its incredible natural surroundings, including fjords and mountains. (In the darker months, it’s a great place to catch the Northern Lights.)
And now, it’s also home to Stargate Norway, OpenAI’s first data center initiative in Europe.
As you may recall, OpenAI’s first Stargate-branded initiative was announced on the first day of President Donald Trump’s second term. The goal of that $500 billion initiative is to support AI development both in the U.S. and abroad.
Its first project is in Abilene, Texas.
OpenAI then announced the UAE Stargate Project in May, bringing its AI infrastructure to the Middle East… and creating potentially one of the largest data centers in the world.
Now, OpenAI is expanding its AI services to Europe in what it calls “one of the most ambitious AI infrastructure investments in Europe to date.”
Although this news may not bring an influx of tourists, it will certainly require large amounts of infrastructure to build and operate the data center.
Therein lies the profit opportunity.
So, in today’s Smart Money, let’s take a closer look at OpenAI’s latest initiative.
And I’ll share what I believe is the best way to play the data center boom.
Let’s dive in…
Norway’s Big AI Bet
The Narvik facility is being developed as a collaboration between OpenAI, Norway’s industrial giant Aker ASA, and AI infrastructure specialist Nscale Global.
Nscale will design and build the site as part of a 50-50 joint venture with Aker. Each company has committed around $1 billion to the initial phrase of the project. OpenAI will be a so-called “off-taker” in the project, buying capacity from the data center.
The site will initially install 100,000 Nvidia Corp. (NVDA) graphics processing units (GPUs) by the end of 2026. And OpenAI says it has “the intention to expand significantly in the years ahead.”
The project will start with an initial 230 megawatt (MW) annual capacity. For context, 1 MW can power around 750 average U.S. homes. So, 230 MW is equivalent to powering 172,500 American homes.
In comparison, the largest data centers from Alphabet Inc. (GOOG) typically range from 100–150 MW. So, Stargate Norway’s is very large by industry standards.
And it already has plans to grow larger. The site could expand to 290 MW in future phrases, potentially scaling up to a tenfold increase depending on demand. That’s 223,000 homes.
The Stargate Norway facility will be powered entirely by renewable hydropower, as the data center is designed for sustainable AI compute. Plus, Narvik’s cold, and that’s going to keep the data center equipment running efficiently and reduce the need for energy-intensive cooling systems.
OpenAI’s long-term vision is to provide AI to everyone.
As the company said in its release…
AI is a foundational technology that can boost productivity, drive economic growth, and power new industries. Large-scale compute capacity in Europe will help ensure that this transformation benefits people and communities including developers, researchers, scientists, and startups across Norway and Europe.
While AI needs data centers to develop, data centers themselves need something specific to run.
And I’ve zeroed in on a company that provides it…
If You Build It… Fiber Optics Will Come
To build an AI data center, especially one as big an undertaking as Stargate Norway, thousands upon thousands of servers must be installed.
But here’s the kicker: Those servers are useless unless they can talk to and learn from each other. And the way they communicate is through fiber-optic cables.
New AI hyperscalers need 10X more cables than regular data centers. That’s enough fiber to circle the globe eight times – in a single facility.
To harness that growth, I’ve got a pick that fits squarely in the category of stock I love the most – overlooked and underhyped.
This company quietly built the backbone of the internet, while scores of companies boomed and busted.
And now, as AI explodes, it is a leading supplier of what every data center desperately needs. In fact, this company’s CEO recently said the company’s production of AI fiber is tripling every month.
High demand means customers are inking deals with the company to reserve product ahead of time to edge out competitors. Already, 80% of the AI fiber-optic cable this company makes over the next five years is spoken for.
And it is manufacturing most of it right here in America. This means no tariffs and no trade restrictions for its U.S. customers.
You can learn how to access my full research and all of this company’s details in my latest free special broadcast, so you can add it to your portfolio immediately.
Regards,
Eric Fry
