With the artificial intelligence boom showing no signs of slowing, investors should invest in power companies.
After all, a typical AI data center consumes about 1.75 billion kilowatt-hours of electricity per year. To put that into perspective, the average American home uses about 10,800 kilowatt-hours annually. That means just one single AI data center uses as much electricity as roughly 162,037 American homes.
And with AI giants like Google, Amazon, Microsoft and OpenAI planning to build thousands of data centers in the U.S., more energy will be needed.
In addition, according to the International Energy Agency, by 2030 these AI data centers will demand as much electricity as entire developed nations like Germany or Japan.
Plus, according to Goldman Sachs, “global power demand from data centers will increase 50% by 2027 and by as much as 165% by the end of the decade (compared with 2023).”
And, according to the International Energy Agency (IEA):
“Global electricity demand from data centers is set to more than double over the next five years, consuming as much electricity by 2030 as the whole of Japan does today. The effects will be particularly strong in some countries. For example, in the United States, data centers are on course to account for almost half of the growth in electricity demand; in Japan, more than half; and in Malaysia, as much as one-fifth.”
That’s creating opportunity in stocks such as:
Sempra Energy (SYM: SRE)
With a yield of 3.5%, Sempra is a leading North American energy infrastructure company focused on delivering energy to nearly 40 million consumers.
As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving the energy resilience of some of the world’s most significant economic markets, including California, Texas, Mexico and global energy markets.
PG&E Corporation. (SYM: PCG)
PG&E Corp. is a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. It’s also the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California.
Further Reading: Nearly 3,000 more of these are on the way …
We’re just at the start of an explosive expansion of data center production.
More and more are desperately needed to keep pace with AI’s exponential growth.
Big Tech has gone all in. And the market for these superpowered AI data centers is not just expected to grow fast …
It’s expected to literally erupt, with growth estimated at 2,000% in the coming years.
In fact, nearly 3,000 new data centers are expected by 2030.
But here’s the thing …
The rapid development of these AI data centers …
That’s something everybody knows.
But what the media’s not telling you is that, on average, just one new AI data center requires the same amount of electricity needed to power 750,000 homes.
That’s greater than the population of cities like Seattle, San Francisco and Denver.
And that’s just one AI data center.
Roughly 3,000 more of them are on the way. And soon.
This boom in AI data center manufacturing is going to push America’s power grid to the brink.
With potentially catastrophic repercussions.
Big Tech is spending billions on potential solutions, like nuclear and geothermal energy.
But those solutions won’t be available on a mass scale for three, four even six years … at the earliest.
They won’t do anything to solve this impending energy crisis going on today.
While the idea of AI data centers popping up all over the country and sapping power right from under our noses sounds quite scary …
This potential catastrophe could also reveal one of the greatest investments ideas you’re ever going to find.
Michael Robinson is a Pulitzer Prize-nominated investigative journalist who’s spent more than four decades uncovering the truth behind big tech trends.
He’s been hounding this story for the past couple of years.
And his research recently uncovered two companies that could make a massive difference right now.
Find out all about Michael Robinson’s next big tech prediction here
