AI Boom Spotlights Hidden Winners: Energy Grids and Data Centers
The AI revolution is reshaping the landscape of technology and infrastructure. Significant investments in hardware, energy grids, and data centers will be essential to support this transformation.
Growing Demand for AI Infrastructure
As companies accelerate their AI initiatives, demand for high-performance hardware surges. Key components include GPUs, CPUs, networking equipment, and storage solutions. Nvidia stands out as a market leader, supplying many of these critical components.
Investment in Physical Data Centers
The estimated capital spending on AI infrastructure could reach $5.2 trillion by 2030, according to McKinsey. This figure encompasses not only hardware investments but also the physical structures housing AI technologies.
Key Players in Data Center Development
- Equinix: In 2024, Equinix embarked on a $15 billion joint venture to develop xScale facilities, which are large-scale, AI-ready data centers.
- Digital Realty: The company launched its first U.S. Hyperscale Data Center Fund in 2025, aiming to support $10 billion in investments. It also partnered with Blackstone for a $7 billion project focused on large-scale data centers.
- Brookfield Infrastructure: Operating over 140 data centers globally, it has a capacity of 1.6 gigawatts (GW) and plans for an additional 3.4 GW. The company is also exploring advanced fuel cell technology to power its data centers.
The Energy Behind AI
The operation of advanced AI facilities requires substantial energy resources. Many AI campuses consume over 1 GW of electricity, equating to the power needs of approximately 750,000 homes. According to Anthropic, the U.S. will require at least 50 GW of power for AI by 2028.
Leading Energy Companies
- NextEra Energy: This company plans to invest over $25 billion in expanding electricity transmission projects. It is also active in developing renewable energy and has partnered with Google for nuclear energy initiatives.
- Williams: With multiple projects aimed at increasing gas supply, Williams is investing over $14 billion across 30 projects. They also have $5.1 billion in projects focused on gas-powered generation for data centers.
The Future of AI Infrastructure
For AI technology to reach its full potential, robust physical infrastructure is essential. Companies like Brookfield Infrastructure and NextEra Energy are crucial in this development. Their investments will enable the AI boom, creating new opportunities for investors and stakeholders.
