More than $1 trillion could be spent on artificial intelligence.
In fact, according to Goldman Sachs, “The investment banking firm estimates that around $1 trillion will be spent over the next few years on data centers, semiconductors, grid upgrades, and other AI infrastructure,” as noted by Data Center Dynamics.
Also, as noted by The New York Times, “A.I. data centers have a big appetite for electricity. The so-called graphic processing units, or G.P.U.s, used to train large language models and respond to ChatGPT queries, require more energy than your average microchip and give off more heat. With more data centers coming online almost every week, projections about how much energy will be required to power the A.I. boom are soaring.”
While AI demand will be great news for data center REITs, like Digital Realty (DLR), it’s also good news for energy stocks, like NextEra (NEE). According to the company, the power required for AI could force electricity demand 38% higher between 2020 and 2040, which is up from the 9% increase in demand between 2000 and 2020.
Sincerely,
Ian Cooper
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