AI power and infrastructure needs boomed in 2025. At Davos, the AI story for 2026 remains the same.

Core Insights - The AI boom is driving a significant increase in energy demand and infrastructure development, with expectations for these trends to continue into 2026 [1] Energy Demand and Infrastructure Development - President Trump highlighted the need for more than double the current energy capacity in the US to support AI plants, emphasizing the administration's commitment to enhancing domestic electricity infrastructure [2] - Global power usage by data centers is projected to rise from approximately 55 gigawatts to 84 gigawatts within the next two years, according to Goldman Sachs [3] - The US is experiencing a surge in infrastructure and energy production, with steel production reportedly doubling and tripling, and factory construction increasing by 41% [6] Industry Performance - The Industrials sector has seen a 17.5% increase over the past year, outperforming the S&P 500's 13.5% return, with Caterpillar, the largest heavy machinery operator in the US, achieving a remarkable 58% return in the same period [5] - Nvidia's CEO stated that AI development will necessitate "trillions of dollars" in spending, marking it as the "largest infrastructure build-out in history" [7] Challenges in Infrastructure Development - Heavy machinery companies are facing significant backlogs for essential parts like natural gas turbines, and connecting new-generation equipment to the US power grid can take over a decade [4]