Cutler identifies Pennsylvania natural gas as a prime target, viewing the region as an ideal hub for energy-hungry data centers that require close proximity to population centers. While the massive energy requirements of modern AI models remain a hurdle, he believes the industry has successfully mitigated water consumption concerns through improved cooling efficiency. He intends to maintain these positions as long as tech heavyweights like Alphabet and Nvidia sustain their capital expenditure levels, at least until nuclear power becomes a more viable alternative.
Orbis Investments Bets on AI Energy Infrastructure
Artificial intelligence is shifting the investment landscape from pure software plays to the raw materials powering the digital revolution. Alec Cutler, portfolio manager at Orbis Investments, argues that the most compelling opportunities lie not in the tech giants themselves, but in the energy and hardware ecosystems supporting their growth.
Beyond energy, the strategy focuses on the hardware supply chain. Cutler holds South Korea’s Samsung Electronics to capture the surging demand for DRAM and NAND flash memory, alongside a position in Taiwan Semiconductor Manufacturing Company. The portfolio also leans into commodities, specifically copper and gold producer Barrick Mining, and the Italian cable manufacturer Prysmian Group. These selections underpin the Orbis Global Balanced Strategy, which aims to outperform its benchmark by blending global equities and government bonds with strategic commodity exposure.
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