Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report highlights a historic paradigm shift driven by artificial intelligence (AI), which is expected to create new industries and transform the economy [6][19] - AI is projected to increase global data center power demand by 160% by 2030, necessitating innovative financing solutions and infrastructure development [9][38] - The convergence of compute and power is creating urgency for corporate leadership to strategically navigate the evolving landscape [10] Section Summaries A Historic Paradigm Shift: AI Ushers In a New Era for Computing - AI is rapidly advancing, fundamentally transforming industries and creating new opportunities [19] - The infrastructure required for AI workloads is significantly more complex and resource-intensive than previous computing paradigms [21] - Hyperscalers are expected to invest $1 trillion in AI technology by 2027, indicating a substantial expansion in capital expenditure [22] The Power Imperative: Generational Opportunities and Challenges - Data center power usage is expected to increase by 160% by 2030, driven by AI demands [38] - The aging US power grid poses a critical bottleneck for meeting this rising demand [39] - Utility companies are exploring new rate structures and partnerships to accommodate large-load customers like hyperscalers [45][46] Data Center Diplomacy: A New Tool for Geopolitical Influence - Data centers are becoming strategic assets for nations, allowing them to leverage infrastructure for geopolitical and economic advantages [71] - The flexibility in data center location enables countries to form strategic alliances and enhance competitiveness in the digital economy [73] Meeting the Moment with Capital Solutions - Global hyperscalers' capital expenditure reached approximately $800 million per day in 2024, reflecting the urgency of infrastructure needs [78] - Joint ventures and creative financing solutions are emerging to meet the unprecedented capital demands of the AI ecosystem [79][80] - The expected capital demand for digital infrastructure by 2030 is projected to be $2 trillion, highlighting the scale of investment required [80]