Next-generation research at Julius Bär warns that the surge in AI infrastructure spending is creating a critical bottleneck in electricity supply, with data centers now requiring gigawatt-scale power—equivalent to multiple nuclear reactor blocks—rather than the megawatt levels seen previously.
The shift reflects the rapid expansion of hyperscale computing capacity, which has already driven gains for semiconductor, memory chip and data-center equipment providers. However, the pace of energy demand growth is outstripping grid expansion and generation capacity upgrades, prompting hyperscalers to lock in long-term power contracts to secure supply.
Geopolitical tensions, including risks tied to the Iran conflict and the Strait of Hormuz, further complicate the outlook by adding uncertainty to energy markets. Julius Bär’s analysis suggests that energy utilities and their suppliers could emerge as key beneficiaries of this dynamic, with sustained demand, long-term offtake agreements and rising electricity prices creating a favorable environment for select companies.
The firm’s latest report identifies five under-the-radar stocks positioned to capitalize on the surging energy needs of the AI boom.
