Market Monitor

As part of our ongoing Market Monitor series, Energy Advisors Group has prepared this 5-page initial report addressing AI, Data Centers and Power Demand as a continuation of our thought leadership content. We leverage our decades of deal experience to provide content that enables our clients to keep abreast of markets and opportunities.

We highlight the fact that the SuperMajors own the longest histories of producing energy. They have the expertise, assets and balance sheets to solve, and profit from, the complex challenges of rapidly increasing U.S. power needs to facilitate the revolution of AI and the critical path for more power. They are reallocating capital and focus toward one of the fastest growth opportunities witnessed over the last several decades.

We would like to take a moment to remind our clients that at our core, Energy Advisors is a deal shop and we share our learnings through our research content. We hope you think of us both as agents of sales and agents of thought.

Here’s Three Quick Takeaways —

• Globally, Data Centers Need 400% More Power in Ten Years
• For perspective, global electricity generation was 31,000 Terawatt-hours in 2024.
• US and China account for nearly 50% of forecast data center power needs by 2035.
• The US will need on the order of 15% more power for "planned" data centers.
• Seemingly daily news of multi-billion data centers has focused energy players to focus on electricity.
• Most stocks providing essential products found in or connected to a data center have rocketed higher.
• Power Mix
• The overriding preferred power generation in the U.S. is and will continue to be gas-fired.
• Solar is strong as it's among the fastest of power generation to implement.
• Battery storage fuel cells are rising in usage as they are quick to deploy and behind the meter.
• Nuclear names are experiencing a renaissance though realistically will take a decade.
• Value?!
• The power gap surrounding AI has led to the launch of numerous companies - some now have multi-billion dollar market caps but don't generate revenue... and likely won't for many years.
• What's been overlooked in the AI power grab are those with the longest histories of producing energy: the Supermajors.
• Companies like Exxon, Chevron, Shell, TotalEnergies, BP and ENI are actively reallocating capital and focus toward one of the fastest growth opportunities witnessed over the last several decades.

Below are 3 excerpts from the Monitor.

Page 1 gives perspective to the essential power needs that will dictate the true trajectory of AI's lofty expectations -----

Page 2 contrasts AI "Story Stocks" with the SuperMajors in the race and ability to provide more power -----

Page 3 updates you on Data Centers Operating/Under Construction, Planned and Total. Overlayed with with the US natural gas pipeline network -----

The FULL 5-page report is available for download to the right.

Energy Advisors Group is working hard to expand our thought leadership leveraging our decades of industry expertise. We look forward to providing additional market insight for our clients through Market Monitor, Regional Perspectives, Deal Alerts and Quarterly M&A Outlook. 

Our firm has been serving the needs of buyers, sellers and capital providers for over thirty-five years. We stand ready to assist asset owners in a competitive divestment process and to help buyers find off-market strategic assets for their portfolio. Call Rich Martin at 214-744-2495 or email rmartin@energyadvisors.com for a private consultation.

TO LEARN MORE:

Blake Dornak

Vice President

Phone: 713-600-0169

– Email: bdornak@energyadvisors.com

Brian Lidsky

Director-Research & Special Projects

Phone: 713-600-0138

– Email: blidsky@energyadvisors.com

IF YOU NEED ASSISTANCE downloading the full report or creating a login into our platform , contact:

Stephanie Epps

– Email: stephanie@energyadvisors.com

This article is for informational purposes only and not intended as financial advice. Please conduct your own research before investing.