The current frenzy surrounding AI resembles the historical California Gold Rush of 1849. During the rush it was often the vendors of essential tools and equipment, such as picks, shovels, and pans, who reaped the greatest rewards.
In this modern AI gold rush, data centers serve as the foundational tools necessary to harness the potential of AI technologies. While currently attention is focused on improving computing power, soon AI’s biggest constraint will be energy.
As AI rips through carbon intensive resources at a time when the world aims for net zero emissions by 2050 it becomes clear increases in the supply of renewable energy is essential. Yet, as more governments wake up to the reality that the rate renewable energy is being adopted at will not sustain both data centers and the national grid they will need to look to clean nuclear energy. This will allow governments to achieve decarbonization goals whilst ensuring reliable energy supply.
As such, investors would be wise to shift their focus from AI stocks themselves and start considering what is needed for this technology to come to fruition. This means growing demand for uranium and cooper, old-world commodities that are fundamental to the growth of the world’s clean energy capabilities in both the short and long term.
Scott Clements, Partner at Tribeca Capital, details this further in the Business Times article here, or you can also access the full article here.
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