March 27, 2026

Energy and the AI Race

Energy and the AI Race

When you hear the phrase ‘AI Race, ’ you’re likely to think of cutting-edge technology, but the key to winning the ‘race’ may be something else – energy generation. As we reported last year, global grid investment was set to top $470 million in 2025, an annual increase of 16%. While a portion of that

by Dejan Pekic

27

March 2026

Energy and the AI Race

Posted by Dejan Pekic

When you hear the phrase ‘AI Race, ’ you’re likely to think of cutting-edge technology, but the key to winning the ‘race’ may be something else – energy generation.

As we reported last year, global grid investment was set to top $470 million in 2025, an annual increase of 16%. While a portion of that was due to stalled infrastructure and rising inflation, AI has been a significant driver. The construction of AI data centres and the immense size of those facilities are reshaping electricity demand. 

The International Energy Agency (IEA) predicted in 2024 that electricity consumption from data centres, AI and cryptocurrency could double by 2026. Projection figures from EEI Industry Capital Expenditures also pointed to accelerated grid requirements, suggesting US$1.1 trillion in US investor-owned electric utilities between 2025 and 2029. 

Thanks to key players, including Meta and Microsoft, more than 40% of global data centre capacity now sits within the United States. That may shift, however, with China, for one, investing heavily in AI infrastructure.

And with power demand accelerating globally, what may be needed is a comprehensive strategy that incorporates renewables and traditional energy sources, as well as battery storage facilities, grid infrastructure and energy-efficiency solutions – providing growing investment opportunities.

Interested in technology or energy investments? At Newealth, our market updates help ensure your financial planning is considered and future-focused. For personalised advice, please contact us.

 

General Advice Warning:

The information in this blog is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for you and seek professional advice before making any financial decisions.
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