Al, data centers and the coming US power demand surge

Investment Rating - The report highlights 16 Buy-rated stocks across sectors exposed to the US data center power demand surge [7][8][49]. Core Insights - The report forecasts that global data center power demand will more than double by 2030, driven by AI and broader demand, leading to a 2.4% CAGR in US electricity demand through the end of the decade [2][6][49]. - Data centers are expected to comprise approximately 8% of total US power demand by 2030, up from about 3% currently, with a projected 160% increase in data center power demand from 2023 to 2030 [11][49]. - The report estimates that about $50 billion in capital investment will be required for new power generation capacity in the US to support this growth, with a 60/40 split between gas and renewables [2][11][49]. Summary by Sections Data Center Power Demand - Data center power demand is projected to grow at a 15% CAGR from 2023 to 2030, contributing approximately 90 basis points to the overall US power demand CAGR [6][49]. - The report anticipates that data centers will account for 8% of total US power demand by 2030, translating to a 16% CAGR for data centers from 2023 to 2030 [11][49]. Investment Opportunities - The report identifies underappreciated equity investment opportunities in utilities, renewable generation, and industrials that will support the anticipated growth in data center power demand [2][7]. - It emphasizes that investor interest in the data center growth is not new, but differentiation among enablers and beneficiaries will be crucial for future investment strategies [8][49]. Infrastructure and Capacity Needs - An estimated 47 GW of incremental power generation capacity will be required to support US data center power demand growth cumulatively through 2030 [6][11]. - The report discusses potential bottlenecks in generation and transmission, highlighting the importance of expediting the permitting process for new projects to alleviate constraints [6][20]. AI's Role in Power Demand - AI is expected to represent about 20% of overall data center power demand by 2030, with a projected increase of around 200 TWh in power demand from AI between 2024 and 2030 [22][29]. - The report notes that new AI innovations are increasing computing speed while also raising power consumption per server, indicating a complex relationship between demand and efficiency [31][38].