Power demand is expected to explode over the next few years thanks to artificial intelligence and data centers. According to JLL.com, “Consumers and businesses are expected to generate twice as much data in the next five years as all the data created over the past 10 years.”

“Data center storage capacity is expected to grow from 10.1 zettabytes (ZB) in 2023 to 21.0 ZB in 2027, for a five-year compound annual growth rate of 18.5%,” they added. 

“Not only will this increased storage generate a need for more data centers, but generative AI’s greater energy requirements – ranging from 300 to 500+ megawatts – will also require more energy efficient designs and locations. The need for more power will require data center operators to increase efficiency and work with local governments to find sustainable energy sources to support data center needs.”

That alone creates big opportunity for natural gas and renewable energy.

After all, AI and data centers will consume 8% of U.S. power demand by 2030, compared with 3% currently, according to Goldman projections.

That being said, Goldman Sachs is most bullish on Kinder Morgan (KMI), EQT (EQT), First Solar (FSLR), Sempra (SRE) and Southern Company (SO).

Just something to keep in mind if you’re looking for opportunity in the market.