Alberto Gandolfi

Power surge: AI, renewable energy, and the future of electricity

Carly Davenport, Alberto Gandolfi, Brian Singer, Allison Nathan

Global power demand is surging due to generative AI and data center expansion, with US growth forecast to accelerate to a 2.5% CAGR by 2030 while Europe faces similar pressure from electrification plans. Goldman Sachs predicts an "all-of-the-above" generation strategy dominated by natural gas and renewables to support an estimated $50 billion in new US infrastructure investment, even as nuclear adoption shifts toward direct power purchase agreements and small modular reactors. This transition faces significant bottlenecks including multi-year permitting delays, equipment shortages, and grid modernization needs, positioning the sector for a generational investment boom over the next decade.