The International Energy Agency (IEA) projects a significant surge in global electricity consumption from data centers, potentially escalating from 460 TWh in 2022 to surpass 1,000 TWh by 2026, akin to Japan's total electricity usage.
This surge presents a promising opportunity for power generation firms like Bloom Energy (BE), as highlighted by Byrd in conversation with Yahoo Finance. He asserts that Bloom Energy, a fuel cell company, stands among the entities adeptly positioned to cater to the burgeoning power demands of the GenAI era.
Byrd emphasizes the crucial role of technology like Bloom Energy's fuel cells in swiftly enabling the establishment of new data centers, noting their capacity to be deployed within a mere 50 days. CEO KR Sridhar echoed this sentiment during Bloom Energy's recent earnings call, identifying AI data centers as the company's primary growth segment for the next decade, with a massive sales potential.
In addition to Bloom Energy, other power producers such as Constellation Energy (CEG), Public Service Enterprise Group (PEG), Vistra (VST), NextEra Energy (NEE), and Dominion Energy (D) are identified by Bank of America research analyst Paul Cole as poised to benefit significantly from the escalating power demand driven by data center expansion.
Despite the considerable increase in AI's energy consumption over the past year, industry experts believe this trend has only just begun. Wall Street analysts suggest that GenAI growth is anticipated to drive a roughly 100% annual increase in electricity demand for years to come. Cole underscores that we are still in the nascent stages of this dynamic, with investors increasingly scrutinizing the entire value chain involved in supplying power to data centers.
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