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Electricity demand growth tied to AI and EV power needs
US electricity demand has risen about 3% per year since it began increasing last year, and the article argues the growth rate is expected to accelerate.
OilPrice says the AI boom and the continued growth of electric vehicles are expected to increase power demand, because AI data centers require large amounts of electricity and EV adoption adds to overall electricity needs.
The outlet argues that power generation and electricity infrastructure companies can only meet that rising demand if there is significant investment in both electricity generation and power transfer infrastructure.
OilPrice notes that, after being largely flat for around two decades, US electricity demand started to increase last year, but the initial rise has been relatively modest, around 3% per year.
The article says the next step depends on how investors view forecasts for electricity demand growth and whether current expectations are overdone or possibly underestimated.