Power Push: Will We Build Too Much – Yes, Looking at Proxies

C-MACC Weekly Sustainability and Energy Transition Report

Power Push: Will We Build Too Much – Yes, Looking at Proxies

• 1st Topic of the Week: The perceived US power supply problems relating to data centers and AI, could be solved by co-locating gas-powered generation with the demand – move the gas rather than the power, and that way, get around the grid infrastructure problems. Generally, when you see new entrants jumping into an old business it is time to leave, but Chevron and ExxonMobil could make good returns.  
• Otherwise: We look at the renewables push in Europe, rising carbon values in Europe, cheap ethanol, and cheap Middle East renewable power.

Exhibit 1: The rising need for power is now well understood – natural gas-based power can fill the gap far easier than renewables and far faster than nuclear.

Source: DatacenterHawk, Company Announcements, C-MACC Estimates