AI Data Centers Drive Electricity Demand: Goldman Sachs Picks 16 Stocks To Play The Trend
Portfolio Pulse from Piero Cingari
Goldman Sachs forecasts a significant increase in U.S. power demand due to AI data centers, projecting a 15% CAGR from 2023-2030. This growth is expected to raise data centers' power demand to 8% of total U.S. demand by 2030. Approximately 47 GW of additional power generation capacity will be needed, with an estimated $50 billion in capital investment. Goldman Sachs has identified 16 stocks across various sectors as beneficiaries of this trend, including utilities, clean technology, and industrial tech.
April 29, 2024 | 4:37 pm
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Cameco Corporation, as a provider of clean energy storage solutions, is poised to benefit from the need for backup power solutions in AI data centers.
Cameco's clean energy storage solutions are essential for the reliable operation of AI data centers, driving demand for its services.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
EQT Corporation stands to gain from the rising nuclear power capacity as a uranium producer and nuclear fuel supplier, with AI data centers increasing power demand.
As a key supplier in the nuclear sector, EQT is positioned to benefit from the increased demand for nuclear power to support AI data centers.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Fluence Energy Inc., as a natural gas producer, is set to capitalize on the heightened demand resulting from the expansion of electric loads by AI data centers.
Fluence Energy's position as a natural gas producer aligns with the growing need for energy sources to power AI data centers.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
NextEra Energy Inc. is strategically positioned in the renewable sector to benefit from the surge in AI data loads, with its renewable energy solutions meeting the growing power demand.
NextEra's focus on renewable energy solutions for AI data centers places it as a key player in meeting the increased power demand.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Vertiv Holdings Plc, with its thermal cooling and power management offerings, is well-positioned to benefit from the increased power demand from AI data centers.
Vertiv's offerings directly align with the needs of growing AI data centers, making it a primary beneficiary of the increased power demand.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90