Ariel Investments: The energy space as it relates to AI is a big opportunity for private equity

Data Centers & AI - Concerns exist about a potential bubble in data centers, especially after Oracle's results, due to customer concentration [1] - The industry is bullish on AI and data center growth in the US [2] Energy Sector Investment - The energy space is viewed as having mass potential for private equity investment in the next 5 to 10 years [2] - Private equity investment is focused on energy services and utility services, specifically improving the grid [4] - Energy demand is expected to double over the next 25 years [5] - Supply chain issues and a shortage of skilled technicians create opportunities in the private equity space [5] Utility Services Consolidation - Significant fragmentation exists among utility service providers, creating consolidation opportunities for private equity [5] - Consolidation focuses on service providers serving the utilities, driven by increased outsourcing due to a shortage of skilled technicians [8] - Investment is aimed at consolidating service providers to large utilities where massive growth is anticipated [9] Materials & Services - Private equity money is flowing across the entire ecosystem, including materials needed for building data centers [10] - Investment is also directed towards O&M (Operations & Maintenance) services [10]