Natural Gas, Uranium Prospects Rise Amid "Accelerating Urgency to Secure Power" for Data Centres

Morgan Stanley analyst Stephen Byrd sees accelerating urgency to secure power for data centre growth, with potential catalysts including Bitcoin-to-DC conversion transactions, large natural gas-fired power deals, and nuclear power plant data centre announcements. Darrell Cronk, chief investment officer of Wells Fargo, lists the One Big Beautiful Bill Act as a key theme, with sizable increases in expensing, higher deduction limits for R&D and manufacturing infrastructure, and looser interest-deduction limits for companies. This could lead to a lift in margins and earnings, as well as boosts to the bottom line.

onsemi (Nasdaq: ON) has announced a strategic acquisition of Vcore power technologies and associated intellectual property (IP) licenses from Aura Semiconductor. The deal, set to close in Q4 2025, aims to enhance onsemi's power management portfolio, particularly for AI data center applications. This acquisition will allow onsemi to offer comprehensive solutions from grid to core power delivery, positioning the company as a leader in intelligent power solutions onsemi to Acquire Vcore Power Technology from Aura Semiconductor to Strengthen AI Data Center Leadership^[1].

Strategic Importance

The acquisition of Vcore power technologies from Aura Semiconductor is a calculated move to strengthen onsemi's position in the rapidly expanding AI data center market. The technology fills a critical gap in onsemi's power management portfolio, enabling the company to offer end-to-end power solutions from grid connection to processor core – a capability few competitors can match onsemi to Acquire Vcore Power Technology from Aura Semiconductor to Strengthen AI Data Center Leadership^[1].

Impact on AI Data Center Infrastructure

Modern AI accelerators can consume 600-800W per chip, creating significant design challenges. onsemi's integration of Vcore technology will allow it to deliver solutions with superior power density, efficiency, and thermals, enabling more compute capacity per rack. This vertical integration should yield superior systems-level solutions with optimized interfaces between power conversion stages onsemi to Acquire Vcore Power Technology from Aura Semiconductor to Strengthen AI Data Center Leadership^[1].

Financial Implications

The transaction is expected to have minimal impact on earnings in the first fiscal year following close, becoming accretive thereafter. The financial impact appears measured, with the acquisition focusing on technology rights and IP licenses rather than the entire business unit. This approach limits integration complexity while capturing the essential technological capabilities onsemi to Acquire Vcore Power Technology from Aura Semiconductor to Strengthen AI Data Center Leadership^[1].

Regulatory Environment and Market Trends

In parallel, Louisiana has approved a tax break and power supply for Meta's massive new data center in Richland Parish. The 4-million-square-foot facility will require more than 2 gigawatts of energy to run. The approval, despite criticism, underscores the urgency to secure power for data center growth, with potential catalysts including Bitcoin-to-DC conversion transactions, large natural gas-fired power deals, and nuclear power plant data center announcements Louisiana Hands Meta a Tax Break and Power for Its Biggest Data Center^[2].

Investment Implications

Analysts like Morgan Stanley's Stephen Byrd and Wells Fargo's Darrell Cronk see accelerating urgency in securing power for data center growth, with potential catalysts including Bitcoin-to-DC conversion transactions, large natural gas-fired power deals, and nuclear power plant data center announcements. The One Big Beautiful Bill Act, with sizable increases in expensing, higher deduction limits for R&D and manufacturing infrastructure, and looser interest-deduction limits, could lead to a lift in margins and earnings, boosting the bottom line Louisiana Hands Meta a Tax Break and Power for Its Biggest Data Center^[2].

Conclusion

onsemi's strategic acquisition of Vcore power technologies represents a significant step forward in its efforts to dominate the AI data center market. By integrating this technology with its existing silicon and silicon carbide (SiC) expertise, onsemi is well-positioned to meet the stringent power requirements of modern AI infrastructure. The deal underscores the company's commitment to delivering intelligent power solutions and highlights the broader trends in the data center industry.