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Data centers in the U.S. are projected to consume between 7% and 12% of total electricity, up from just 1-1.5% seven years ago, due to the rising computational demands of AI workloads. To accommodate this surge, an estimated additional 250 terawatt-hours (TWh) of electricity will be needed.
As demand increases, Hamilton Lane identifies both traditional and renewable energy generation as attractive investment opportunities, including natural gas, solar, battery storage, and grid upgrades. The One Big Beautiful Bill Act has prompted a reevaluation of capital allocations, with potential federal incentives for power generation linked to AI data centers while also removing some federal credits for renewable projects.
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