This Allianz Global Investors Thematic Pulse by Christian Zilien and David Finger explains how AI data centres and electrification are driving a structural upswing in electricity demand and infrastructure spending.
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After near-flat demand in 2009–24 (0.6% CAGR), US power use is projected to hit record highs in 2025–26, with household bills up ~30% since 2021.
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Data-centre electricity demand is forecast to quadruple (17→66 GWh) by 2035, potentially reaching 12% of US demand.
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US grid capex hit $95bn in 2024; constraints in copper and lithium supply could tighten the electrification value chain.
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