The global conversation is rightly captivated by the exponential advancement of Artificial Intelligence. We are witnessing a seismic shift in computing, driven by the power of large language models and generative AI. But as investment professionals focused on foundational sectors, our analysis at B9F7 Parvis Trust compels us to look beyond the algorithm. The most significant, and perhaps most constrained, opportunity in the AI revolution is not in the code itself, but in the physical, industrial-scale backbone required to run it.

This new form of intelligence has a voracious physical appetite. The digital transformation of the past two decades was built on an infrastructure designed for search, social media, and streaming. The AI revolution is built on an entirely different architecture, one that is straining our existing systems to the breaking point. We see this bottleneck forming across three critical, interconnected layers: power, racks, and packets.

First is power. The compute density required to train a frontier AI model is unlike anything the world has ever seen. A single high-performance AI data center can consume as much energy as a small city. This creates a two-fold crisis. It’s not just a question of quantity—it’s a question of availability. New data centers are facing multi-year waiting lists to connect to a grid that is already fragile. This reality inextricably links the future of AI to the success of the New Energy transition. AI cannot scale without a corresponding, massive scaling of stable, secure, and increasingly clean energy production.

Second are the racks, the very architecture of the data center itself. Traditional data centers were designed for air cooling. The processors required for AI workloads, however, run so hot that air cooling is becoming inefficient, if not impossible. The industry is pivoting to high-density liquid cooling, a fundamental redesign of the data center’s interior. This is not a simple upgrade; it is a new category of industrial real estate. This shift creates a massive opportunity for innovation in specialized cooling technologies, thermal management software, and next-generation data center design.

Finally, there are the packets. The training of a single AI model requires the movement of incomprehensible volumes of data—petabytes upon petabytes—between thousands of processors in a coordinated “cluster.” This places unprecedented strain on network infrastructure. It demands a leap in internal data center networking speeds and a robust, high-bandwidth fiber backbone connecting these facilities. Furthermore, as this data is often proprietary and sensitive, it creates an acute need for new paradigms in Data Security, ensuring this massive data flow is protected, compliant, and secure.

At B9F7 Parvis Trust, our thesis is built on this physical reality. While others focus on the applications, we remain convinced that the most enduring value will be created by solving these fundamental, unglamorous, and capital-intensive infrastructure challenges. The AI revolution will be built, quite literally, on a foundation of new energy, next-generation data centers, and hyper-resilient networks. We are focused on funding the builders of that foundation.