Morgan Stanley Warns of 33GW US Power Shortage by 2028, Taps "Powered Shell" Stocks

Morgan Stanley analyst Stephen Byrd forecast a 33GW US electricity shortfall by 2028, equal to 34% of chip demand, warning that power constraints could become the binding limit on data center expansion. Byrd named Cipher Digital (CIFR), Hut 8 (HUT), Riot Platforms (RIOT), Galaxy Digital (GLXY), and Terawulf (WULF) as beneficiaries, expecting each to sign at least one large data center lease within six months. "Powered shell" providers that repurpose existing grid capacity into data centers are positioned to capture this imbalance. Byrd also predicted a surge in behind-the-meter (BTM) generation demand, favoring Bloom Energy (BE), GE Vernova (GEV), and Cummins (CMI), with multiple BTM deals likely in West Texas. Solaris Energy Infrastructure (SEI) and Vistra (VST) could also benefit. SpaceX (SPCX) has separately entered the gas turbine market following its acquisition of APR Energy earlier this year, targeting turbine blades and vanes as its next constraint to break.