AI: Where Is the Electricity Going to Come From?
AI is set to devour nearly 10% of America’s electricity by 2030...so where will all that power come from? And what is likely to be the surprise winner of the boom?
We have made no secret of our concerns as to where all the electricity is going to come from to power the AI “revolution.” Currently AI consumes some 4.5% of electricity produced by the US grid.
By 2030, it is forecast to consume about 9% (let’s round it to 10%) of electricity produced by the US grid.
The IEA says:
In the United States, power consumption by data centres is on course to account for almost half of the growth in electricity demand between now and 2030.
Driven by AI use, the US economy is set to consume more electricity in 2030 for processing data than for manufacturing all energy-intensive goods combined, including aluminium, steel, cement and chemicals.
In advanced economies more broadly, data centres are projected to drive more than 20% of the growth in electricity demand between now and 2030, putting the power sector in those economies back on a growth footing after years of stagnating or declining demand in many of them.
Then there was this from Goldman Sachs…
Even if the IEA, Goldman, and the other “experts” are only half right, that is going to be rather inflationary! Another issue is where is all that electricity going to come from?
Folks talk about nuclear power, but nuclear power plants take some 10 years to build and existing nuclear power plants are running at near full capacity (as they always do).
And renewables?
Fhugettaboudit!
That is intermittent electricity, and AI/Data centers need electricity 24/7!
Natural gas?
There is a five-year waiting list for turbines.
Hydro?
No spare capacity in hydro, and in any event, hydro is weather (rain) dependent, making it somewhat intermittent.
That leaves good old coal. Fire them smoke stacks up, baby!
By the way, on natural gas powering this, consider how power hungry AI data centres are. A single 100MW hyperscale facility guzzles around 745,000 MWh/year.
For these data centres, their power bill accounts for something like 30-60% of operating expenses. At baseline $85/MWh, that’s $63 million/year in electricity alone.
Now, in much of the US, natural gas is one of the main power sources.
In fact, natural gas provides 42% of all electricity.
Further, consider natural gas pricing.
Baseline Henry Hub sits around $3.20/MMBtu. A 100% spike takes us to $6.40.
Electricity jumps 40% to $119/MWh. That adds $25 million/year to a single facility’s operating expenses.
And keep in mind these facilities burn money to begin with. For the 6GW US build-out in 2025 (60 x 100MW sites), that’s an extra $1.5 billion annually.
As my buddy Kuppy points out, data centres aren’t like power stations or railroads or tanker ships. All those assets have 20-30-year lifecycles.
AI tech is obsolete in 3-5 years because GPUs evolve too fast. Capital expenditures are projected for $400 billion this year, but revenues? Just $15-20 billion. Breakeven needs $320-480 billion/year.
An interesting article which we encourage you to read.
Yes, who would have thought that good old coal would be the ultimate beneficiary of the AI boom. Well, actually we did. Lucky guess,, I suppose.
Look at which sector has doubled in value over the last six months and is up 50% in the last five weeks.
The Smart Money Is Done Playing Defense
Markets are breaking in slow motion. Inflation won’t die. Central banks are trapped. Energy volatility is rewiring global trade. Debt levels are mathematically unfixable. Every week there’s another shock.
Most investors are hoping their portfolios survive.
Insider members aren’t hoping — they’re positioning.
Every two weeks, the Capitalist Exploits Insider Newsletter delivers high-conviction investment research designed to identify where the next major opportunities are forming before they become consensus.
No fluff. No hype. No recycled CNBC headlines.
Just actionable, globally-diversified investment ideas built for asymmetric upside.
What You Get With Insider
Professional investment ideas backed by deep macro and fundamental analysis.
Clear explanations of where major distortions exist — and how to potentially profit from them.
5+ trade ideas in every issue.
Strong focus on asymmetric return setups — opportunities with far more upside than downside.
Straightforward positioning guidance — not day-trading noise or “hot stocks”.
A contrarian lens that consistently spots opportunity before the herd catches on.
This is institutional-grade research made digestible for individual investors who take their capital seriously.
Why Investors Subscribe…and Stay
Insider is built to solve the exact problems that frustrate thoughtful investors:
“I don’t have time to research every sector and every country.”
“Everything feels overpriced — where are the bargains?”
“I want ideas with real upside, not 8% price targets.”
“I’m sick of hype, narratives, and meme-driven speculation.”
“I want an edge — not the same information everyone else has.”
The world is changing too fast to rely on passive investing and hope.
You need to be positioned ahead of the cycle…not reacting to it.
Why Timing Matters…Right Now
If the next 12–36 months look anything like the last three years…
Passive index portfolios will get blindsided.
The biggest winners will come from early positioning in mispriced sectors.
Traditional financial media will continue to report yesterday’s opportunities.
Investors who understand global macro shifts will be dramatically better off than those who ignore them.
Opportunities don’t disappear…they just stop being available to the unprepared.
Pricing…Built So the ROI Makes Sense
Insider gives you access to world-class research at a price designed to be a no-brainer for serious investors.
$39/month
or $420/year ($35/month) — saves ~10% when paid annually
One good idea…literally just one…can more than cover the cost of the subscription.
That’s why so many members stay for years.
Who Insider Is Not For
People looking for day trading alerts.
People wanting “get rich quick” promises.
People who panic when markets move.
Who Insider Is For
Independent thinkers who want to get ahead of major macro trends.
Investors who prefer deep research over hype.
People who want asymmetric upside…not mediocre returns.
Individuals protecting and growing capital in a chaotic world.
The Real Risk Isn’t the Price…It’s Missing What’s Coming
Every month you hesitate is another month the world re-prices.
You can either:
React after the crowd realizes what’s happening
orBe positioned early — with disciplined, professional guidance designed to capture upside when markets shift
If you’re serious about protecting and growing your capital in a decade defined by chaos and opportunity…
👉 Subscribe to Insider today.
Don’t sit on the sidelines while the largest wealth transfer in a generation is already unfolding.
I read on Raoul Pal's Youtube channel that Solar would fill the gap. Colour me skeptical, but the TAN chart has been showing signs of the beginning of a new uptrend. I do appreciate the intermittency issue though.