BlackRock Flags Big AI Trade Beyond Nvidia, AMD, Micron

Key Points:

• The next phase of the AI economy focuses on the critical infrastructure needed to deliver electricity reliably to data centers, highlighting the importance of power equipment, grid connections, and energy security.
• U.S. electricity generation, stagnant for 16 years, has surged since 2024, growing by about 9 terawatt-hours per month, driven by the rapid expansion of hyperscale data centers requiring faster deployment cycles.
• To address power supply delays, many data centers are planning to generate electricity on-site, with over 55 gigawatts of behind-the-meter capacity expected in the U.S., primarily from natural gas turbines and fuel cells.
• The rising demand for data center power is benefiting companies like GE Vernova, which reported record data center equipment orders, reflecting broader investment trends toward energy infrastructure and bottlenecks.
• Increasing residential electricity prices and local political challenges underscore that the AI-driven power demand is not just about growth but also involves complex issues of permitting, regulation, and energy security.