Industry Focus - Africa's electricity challenge is not solely a supply issue, but also a demand problem [1]

Economic Outlook for 2026 - S&P Global Ratings expects AI tailwinds to boost otherwise weak growth in the US [1] - US growth is projected at 2%, potentially driven by AI and data centers, along with lower energy prices and easy financial conditions [2] - AI is estimated to contribute at least 0.5 percentage points to annual US growth [2] - Approximately 80% of domestic spending in the first part of the year was related to AI and data centers [2] Challenges and Risks - Manufacturing sector is experiencing contraction, with tariffs not resulting in the anticipated reshoring [2] - The US economy exhibits a narrowness in labor market strength, demand, manufacturing, and consumer spending [4] - Top 10% of Americans account for roughly 40-50% of spending, indicating a lack of broad-based recovery [5] - Rising electricity demand, driven by data centers, is pushing up utility prices for local communities [7][8] Global Implications - Europe and parts of Asia are benefiting from digital infrastructure build-out in the US, particularly in Ireland, Taiwan, Malaysia, and South Korea [9] - Europe's growth could reach 125% to 150% with the release of the German debt break, focusing on infrastructure and defense [11] - China faces challenges due to a property overhang, despite being a leader in clean tech, with growth around 4-45% [11] - Emerging Markets (EM) are benefiting from lower energy and gasoline prices, which constitute a significant portion of their consumption basket [12] AI and Labor Force Transformation - AI's initial impact on the labor force is expected to be negative, with potential layoffs in the tech sector [13] - The long-term aspiration is for AI to drive new technologies, productivity, and a labor renaissance [13]

Electricity Market Trends & Drivers - Electricity prices have increased by approximately 23% over the past 5 years due to various factors including data center demand, overall inflation, storm costs, and renewable energy policies [2] - Data centers are a contributing factor to electricity price increases, particularly in the Northeast and Mid-Atlantic regions, but their impact is regionally focused [2][3] - Increased electricity demand from data centers is driving the need for increased electricity supply [1][5] Utility Strategies & Solutions - Utilities are negotiating long-term contracts (e g, 12-year agreements) with large hyperscalers to protect residential customers from rising electricity bills [3] - Some utilities have created mechanisms or structures outside the regulated utility model to shield residential customers from the impact of data center electricity consumption [4] - Increasing electricity supply is seen as the primary solution, with an estimated growth of over 28% annually through 20240 [5][6] Energy Supply & Resources - Short-term solutions include restarting old nuclear assets and utilizing less efficient forms of gas generation, as well as extending the life of existing coal plants [6][7] - Natural gas is considered a meaningful resource for new power plants, with potential future contributions from small modular nuclear, large-scale nuclear, and other developing technologies [7] - Renewable energy policies have faced slowdowns, and intermittent renewable resources are not considered ideal for meeting the 24/7 power needs of data centers [8][9] Investment Opportunities - DTE Electric (Midwest utility) is favored due to its data center growth story, with potential for additional hyperscaler partnerships and behind-the-meter generation [10] - First Energy (Mid-Atlantic, Ohio, Pennsylvania wires company) is also highlighted for its potential earnings growth driven by data center demand in its service area, with meaningful upside potential [10] - These companies are seen as having solutions to lower bills for residential customers while driving EPS accretion for shareholders [11][12]

Market Trends - The AI boom promises runaway electricity demand, impacting US power companies [1] - Investors are impatient for results from the AI-driven electricity demand [1] Investment Implications - The AI boom has jolted shares of US power companies [1]

Industry Trend - The US faces a potential electricity crisis this decade due to surging demand from data centers [1] Energy Consumption - Increased electricity demand is driven by the power requirements of data centers [1]

Industry Risk - Rising electricity demand from data centers is raising the risk of blackouts across a wide swath of the US during extreme conditions this winter [1] Regulatory Oversight - The regulatory body overseeing grid stability is monitoring the situation [1]

That's the story. That's the reporting. Lots of investment up front.And you got to wait a long time to get more. Yeah. The thing to keep in mind about nuclear is that everything moves really slowly.You know, I mean, any of these power plants are major construction projects. So already that's a slow thing. And then it's nuclear.So you know that they are going to take their time because it has to be safe. So it's a very slow moving industry. There's huge demand for it Now. There's there's, as you know, just a ...

Jera Co., Japan’s largest power generation company and LNG buyer, sees more opportunities to use the fuel to meet surging electricity demand in Malaysia and Indonesia https://t.co/1sxPXHTpu7 ...

China’s electricity companies are confident that ample coal and gas supplies, and an abundance of renewables, will allow them to meet the usual end-year surge in demand without upset https://t.co/clWJTA5Gik ...

Industry Trend - US electricity demand is surging, renewing interest in atomic energy [1] Project Development - South Carolina utility Santee Cooper is in talks with Brookfield to revive a long-abandoned nuclear project [1]