Is Energy The Next Big Trade?

AI Energy Demand Will Soar 2.6x By 2027

The author(s) owns BTC and options positions in ETH (disclaimer).

1. Introduction:

By 2027, 40% of AI data centers could face power shortages as energy demand surges to 500 TWh—a 2.6x jump from 2023.

As energy surpasses computing as AI's key constraint, AI leaders like Sam Altman are focusing on energy solutions.

Companies like OKLO and VST stand to benefit as the energy transition accelerates.

Key Report Insights:

1. AI’s Power Surge: AI data centers could hit 500 TWh by 2027—a 2.6x jump—threatening energy infrastructure.

2. BTC as an ‘Energy Dollar’: Mining consumes 175 TWh yearly, tying BTC’s value to global energy markets.

3. Regulatory Uncertainty: Government policies shape energy markets, creating volatility and long-term risk.

4. Renewables’ Balancing Act: Growth hinges on subsidies, storage tech, and overcoming grid limitations.

5. Nuclear’s Comeback: SMRs from NuScale and Oklo could redefine clean energy with scalable innovation.

Source: Investopedia