According to analysts, energy infrastructure is expected to be the next big area of focus for AI investors seeking to power highly energy-consuming data centers.
Growing Demand for Electricity
As the demand for AI products and services continues to grow, the demand for electricity to power data centers is also rising. According to the Financial Times, this is creating a new category of attractive businesses, namely energy providers. Experts argue that besides tech firms, which have become overvalued, energy-related firms may attract investors' attention.
Success in Renewable Energy
West added that while technology is fast growing worldwide, the renewable energy sector is also experiencing exponential growth. According to the International Energy Agency (IEA), renewable energy generated in 2025 across the world is expected to surpass coal energy for the first time. However, this may not be enough to meet the fast-growing demand at data centers.
Solutions for Data Center Energy Issues
Experts have suggested two solutions for the energy issues of data centers. The first is “re-carbonization,” which refers to restarting or maintaining fossil fuel power plants. The second option involves leveraging natural gas microgrids and battery storage. Specifically, Thomas McAndrew, the founder and CEO of Enchanted Rock, claims that data centers can ease grid pressure and provide surplus power back to the grid, supporting the expansion of wind and solar energy, thus reducing costs and carbon emissions.
As the demand for AI services grows, so does the need for electricity to power data centers, creating new opportunities for investors in the energy sector. Renewable energy and natural gas solutions may become key elements in ensuring the sustainable development of this infrastructure.
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