Millions of Americans are dealing with extreme heat again.

Along the way, it could fuel bigger demand for microgrids, and technology from companies like CleanSpark Inc. (CLSK). 

According to The Guardian, “The heatwave gripping the US west is simultaneously breaking hundreds of temperature records, exacerbating a historic drought and priming the landscape for a summer and fall of extreme wildfire.  Salt Lake City hit a record-breaking 107 degrees Fahrenheit, while in Texas and California, power grid operators are asking residents to conserve energy to avoid rolling blackouts and outages.”

In addition, as reported by CBS News, “By almost any measure the drought in the Western states this year is about as bad as we’ve ever seen — perhaps the worst in modern history. A severe lack of rainfall over the past two years, combined with a steadily heating climate, has turned California into a tinderbox, setting the stage for what will likely be a catastrophic fire season ahead.”

Even PG&E is warning millions of people to prepare for power outages, with demand on the grid likely to push explosively higher.

However, there is some good news.

Companies like PG&E just launched a strategy to help keep power flowing, with three types of microgrids, according to Microgrid Knowledge. Those include Remote, off-grid facilities located at the end of wildfire prone distribution lines. Distribution microgrids for key resources, such as hospitals, in towns and cities, in addition to Substation microgrids.

That demand should also be a major catalyst for stocks, like CleanSpark (CLSK), which provides the technology used in microgrids.

As reported by NBC News, “As mounting weather-related power failures hammer the country’s electrical grid, a growing number of homeowners are looking for new ways to get their power. For those with the means, that search has led to a boom in microgrids, which allow residents to hitch a power source such as natural gas, wind or sun to technology that can convert that energy into electricity.”

At the time of this writing, Ian Cooper did not hold a position in the CLSK stock.