AI is going to require A LOT MORE ELECTRICITY - May 6

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

AI is going to require A LOT MORE ELECTRICITY - May 6

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Below is a note form the Raymond James energy sector research team based in Houston.
To get a copy of the full report send an email to: Pavel Molchanov pavel.molchanov@raymondjames.com or call him at (713) 278-5270
Tell Pavel that you are an EPG member.
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Energy Stat: Modernizing U.S. Power Grid is Priority #1 to Accommodate Coming Demand Growth

Today’s report is a follow-up on our cross-industry report from April 24 — Can the U.S. Generate Enough Electricity for the AI Boom? — in which we made three key points:
1) the buildout of AI-related data centers is a game-changing driver for U.S. electricity demand, albeit varying a great deal geographically;
2) as a result, for the first time in two decades, the U.S. electric power industry is entering growth mode; and
3) natural gas, wind, and solar are already displacing coal plant retirements — a trend that is here to stay — and the growth in overall demand will create additional opportunities to gain share.

Today, we will look at what needs to happen with the underlying power grid infrastructure to facilitate sustained growth in power demand. To clarify, whereas our earlier report focused on how electricity is generated, our focus today is on transmission and distribution (T&D), and smart grid technology more broadly. This report concludes by highlighting some relevant stocks vis-a-vis the theme of grid modernization.
Dan Steffens
Energy Prospectus Group
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