Photo Courtesy of: Core Capital Photo Courtesy of Photo Courtesy of : Introduction: Why AI Is Rewiring Global Energy Demand Artificial Intelligence is no longer just about algorithms and data—it has become one of the biggest drivers of global electricity demand. Data centers supporting AI models now consume as much energy as mid-sized cities, and this surge is accelerating nuclear, natural gas, renewable, and storage investments worldwide. The Catalyst: AI’s Energy Footprint AI has forced a shift from incremental energy upgrades to existential questions of capacity. A single hyperscale AI facility may require enough power for hundreds of thousands of households. Microsoft, Amazon, Google, and Meta are at the center of this revolution, with capital expenditures surpassing hundreds of billions annually. Nuclear’s New Role in the Digital Economy Nuclear power, once sidelined, is now emerging as indispensable baseload energy. Amazon has partnered with Talen Energy, Microsoft is exploring advanced nuclear reactors, and Meta has adopted nuclear-specific sustainability targets. The shift underscores a new narrative: nuclear as the backbone of the AI-driven economy. Natural Gas: The Bridge Fuel While nuclear rises, natural gas remains the stabilizer of choice. Its flexibility ensures it can complement renewables and scale up quickly to meet peak AI power demands. This dual role—cleaner than coal, faster than nuclear—cements gas as the transitional cornerstone. The Grid Bottleneck Energy supply is meaningless without modernized transmission and distribution networks. Antiquated grids and long permitting processes create existential risks for AI infrastructure. The solution will require trillions in grid modernization, creating one of the decade’s largest investment opportunities. Funding the Transformation The funding required is massive. Hyperscalers may lead private deals, but sovereign wealth funds, private equity, and pension funds are critical. Public markets are rewarding utilities, energy producers, and grid technology innovators that can deliver stability in an AI-powered future. Renewables and Storage Despite intermittency, solar and wind remain essential, especially when paired with battery storage. Hyperscalers are locking in long-term green power purchase agreements, ensuring renewables stay a key part of the hybrid model alongside nuclear and gas. Global Competition From fast-tracked nuclear approvals in Europe to LNG contracts in the Middle East and Asia’s aggressive energy investments, the global competition is clear: the nations that secure reliable AI-scale energy will dominate the future economy. Investor Insight: Kam Thindal and Aman Thindal Core Capital Managing Partner Kam Thindal emphasizes the urgency: “AI has compressed the energy transition timeline from decades into years. Those who adapt will prosper, those who hesitate will fade—this applies equally to governments, corporations, and investors.” Core Capital CFO Aman Thindal adds: “The AI-energy convergence is not just a technology play, it is a capital allocation event on a global scale. Investors who understand where power, policy, and AI intersect will be positioned at the heart of the next industrial cycle.” Closing Thoughts The AI-driven energy race will not just reshape power markets—it will define economic growth for the next half-century. Nuclear will anchor baseload, gas will bridge, renewables will complement, and grids will be rebuilt. For investors, this is not merely an energy story—it is the structural marriage of energy and AI.

This story contains new, firsthand information uncovered by the writer.

The Global Energy Transition in the Age of Artificial Intelligence: Analysis by Kam Thindal

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