BlackRock Flags 55 GW of Data-Center Power as Next AI Trade
Updated
Updated · Benzinga · Jun 29
BlackRock Flags 55 GW of Data-Center Power as Next AI Trade
3 articles · Updated · Benzinga · Jun 29
Summary
BlackRock Investment Institute said AI investing is shifting from chips to energy infrastructure, arguing power supply, grid links, turbines and transformers are becoming the sector’s key bottlenecks.
U.S. electricity demand has turned sharply higher: after essentially zero net-generation growth from 2008 to 2024, output has risen about 9 terawatt-hours a month since 2024 — 50% above the old postwar average.
That mismatch is pushing hyperscalers toward on-site generation, with ING estimating more than 55 gigawatts of behind-the-meter capacity planned for U.S. data centers; about 75% is expected to rely on natural gas equipment.
GE Vernova is one beneficiary, with its Electrification segment booking a record $2.4 billion in data-center equipment orders in the first quarter of 2026, topping its previous full-year total.
The buildout also faces political risk as residential power prices have climbed more than 40% since 2021, including a 22% year-over-year rise in Ohio, turning AI power demand into an energy-security and consumer-cost issue.
Is the race to power AI turning data centers into strategic national assets, akin to oil reserves?
With AI driving electricity bills higher, are consumers unknowingly subsidizing the next tech gold rush?
Can nuclear power scale fast enough to prevent the AI boom from being fueled by fossil fuels?
Powering the AI Revolution: The Urgent Quest for 100 GW of Data Center Capacity and Its Global Impact
Overview
Artificial intelligence is rapidly transforming the data center industry, driving a surge in demand that is set to double global capacity by 2030. This explosive growth is fueled by leading AI companies like OpenAI and Alphabet, who are expanding infrastructure through both leasing and self-building strategies. However, power constraints have become a major challenge, making reliable and massive energy supply the new battleground for AI leadership. As a result, the industry is urgently seeking energy innovations to overcome grid limitations, with the future of AI hinging on how quickly and efficiently new power can be delivered to support this unprecedented expansion.