Global Equity Pulse: Beyond the Chips—Powering the AI Revolution

AI infrastructure investment should extend beyond semiconductors to power generation, electrical equipment, cooling and power management as electricity becomes a constraint on data-center growth.

• The International Energy Agency estimates that data centers consumed 415 TWh in 2024, or about 1.5% of global electricity use, and expects consumption to exceed 945 TWh by 2030.
• US data centers could account for almost half of electricity-demand growth through 2030, while the Electric Power Research Institute forecasts that they may consume 9% to 17% of US electricity by then, compared with 4% to 5% today.
• EPRI's medium-growth scenario puts annual US data-center electricity consumption at approximately 596 TWh in 2030, up from 184 TWh in 2024.
• The investment opportunity spans new generation, transmission and distribution networks, gas turbines, transformers, high-voltage equipment, cooling systems and dedicated or behind-the-meter power.
• TGI highlights a US power provider, a Japanese supplier of power systems and advanced cooling, and an Asian power-management company whose AI-related business grew 70% year on year in the first quarter of 2026 and is expected to reach about 30% of 2026 revenue.
• Global equities were broadly unchanged in October, while value stocks outperformed growth as investors reduced exposure to crowded AI, semiconductor and momentum positions.

Takeaway: Investors should seek selective exposure to the wider AI power infrastructure chain, while applying price discipline because elevated valuations, financing constraints and uncertain returns may limit the appeal of weaker companies.