Energy's Growing A.I. Ties: Mag 7 CapEx & Data Centers Accelerate Demand

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NDX

RUT

explicit

Metals

USD

electricity demand sharp up

Tortoise Capital 7.0
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Brian Kessens 8.0

Energy's Growing A.I. Ties: Mag 7 CapEx & Data Centers Accelerate Demand

GOOGL; META; MSFT

wti

Beginning of the year, you're probably closer to that $60 per barrel for oil gradually moving up to $70 per barrel Sees $60-70 as sweet spot where everyone wins; production growth flat but demand increasing; gradual upward movement from $60 to $70

5 calls

+13

slightly better than random

9/2/2025 6:23:01 PM	long term down	61 days later	-4.56%	+4.56%

Welcome Brian Kessens and ask about energy outlook and AI's role

speaker1
speaker2

AI shapes large part of outlook; electricity load growth accelerating from 0.5% to 3.5% annually through end of decade due to data center buildout

Chips from Nvidia and others are power hungry; everyone anxious to use AI applications
speaker2

Load growth also driven by onshoring of manufacturing and shift from fossil fuels to electricity for heating and cars
Ask how portfolio manager job changed with new technology catalyst and what information followed

speaker1
speaker2

Now listening to hyperscalers' earnings calls and CapEx announcements from Alphabet, Google, Meta about AI buildout pace

Pace of buildout drives chip demand which changes power landscape
speaker2

Power sector becoming exciting with need for incremental buildout from renewables, nuclear, natural gas

Oil was main event but power prices and power source mix now key
Ask about oil prices averaging $60-70 and implications for global supply chain

speaker1
speaker2

$60-70 oil is sweet spot where everyone wins - producers get adequate returns, consumers pay less than $4/gallon, not overly inflationary
speaker2

Beginning of year closer to $60, gradually moving up to $70 per barrel

Production growth flat next year but global demand continues to increase by over 1 million barrels per day
Ask what signs would indicate AI-driven energy growth might slow down

speaker1
speaker2

Not seeing any slowdown in energy demand growth; if chip efficiency increases, actually expect demand to go higher

Electricity demand was flat for decades due to efficiency gains, but now seeing bigger step change
speaker2

We continue to use more of every energy source over time

Example: still use more wood today for heating than historically despite other sources

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