Electricity Demand Surge Driven by AI Data Centers
Global electricity consumption by data centers is projected to increase from approximately 415 terawatt-hours in 2024 to nearly 1,000 terawatt-hours by 2030, largely due to the growing demands of artificial intelligence technologies. Multiple companies, including GE Vernova, Constellation Energy, and Quanta Services, are positioned to benefit from this rising energy demand as new power infrastructure, which takes significantly longer to develop than AI data centers, is urgently needed.
For context, massive natural gas turbines typically require three to five years for commissioning and high-voltage transmission lines can take six to ten years to complete. In the second quarter of this year, GE Vernova signed agreements for 20 gigawatts (GW) of new gas equipment, bringing its total under contract to 116 GW, with expectations to reach 125 GW by year-end. Meanwhile, Constellation Energy operates the U.S.’s largest nuclear fleet at 22 GW and reported a 93% capacity factor last quarter, while Quanta Services reported a record backlog of $53.4 billion, adding 15,000 employees in the first half of 2023.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
