The
artificial
intelligence
boom
is
fueling
demand
for
power,
with
many
tech
companies
rapidly
developing
infrastructure
as
they
compete
for
dominance.
Power
needs
are
only
set
to
rise
in
the
coming
years,
as
large
language
models
require
a
lot
of
data
center
capacity.
Data
centers
house
vast
amounts
of
computing
power
needed
for
AI
workloads,
and
are
intense
power-guzzling
workhorses.
But
the
need
for
power
goes
beyond
data
centers
and
other
infrastructure,
according
to
Goldman.
“AI
innovation
has
not
only
driven
the
demand
for
technology
infrastructure,
such
as
semiconductors,
data
centers
and
cloud
services,
but
also
the
demand
for
power
in
manufacturing
and
AI
computation
processes,”
it
said
in
a
May
24
note.
Goldman
cited
studies
which
showed
that
AI
data
centers
can
consume
up
to
10
times
the
energy
of
their
regular
counterparts.
ChatGPT
search
queries
are
also
estimated
to
be
six
to
10
times
more
power-intensive
than
regular
Google
searches,
the
Wall
Street
bank
added.
Goldman
also
expects
“surging”
electricity
consumption
in
Asia,
especially
in
“tech-exposed”
markets
such
as
China,
Taiwan,
South
Korea
and
India.
“For
China,
the
economy
is
rebalancing
towards
areas
of
higher
productivity
and
greater
self-sufficiency,”
said
Goldman.
“One
of
the
core
strategic
growth
objectives
is
achieving
technological
self-sufficiency,
which
involves
more
policy
support
to
the
technology
sector
and
the
advancement
of
AI
and
the
digital
economy.”
China
is
making
progress
in
energy
self-sufficiency,
which
requires
renewable
energy
systems
equipped
with
sufficient
energy
storage
capacities
and
smart
grid
transmission
capabilities,
Goldman
noted.
Taiwan’s
tech
industry
extends
across
a
“comprehensive
global
AI
supply
chain,”
with
tech
manufacturers
consuming
a
“substantial”
amount
of
power.
It’s
a
similar
story
in
South
Korea’s
economy,
Goldman
noted,
with
high-tech
manufacturing
in
areas
such
as
semiconductors
and
memory
chips
and
consumer
electronics.
“For
India,
apart
from
computational
demand
from
software
&
services
companies,
an
uptick
in
foreign
companies
relocating
their
supply
chains
from
China
is
boosting
power
demand,”
the
bank
added.
Power
and
electricity
stock
basket
Against
that
backdrop,
the
bank
introduced
what
it
called
its
power
and
electricity
basket
of
stocks,
comprising
50
stocks
across
China,
South
Korea,
Taiwan,
India
and
Australia.
It
covers
the
supply
chain
of
electricity-related
business,
including
power
generation
or
transmission,
electric
equipment
and
energy
commodities.
Among
other
areas,
it
excludes
solar
manufacturers
in
China,
owing
to
U.S.
tariffs.
“The
basket
is
positioned
to
leverage
the
growing
power
demand
driven
by
tech
manufacturing
and
data
centers,
as
well
as
advancements
in
electricity
transmission
capacities,”
said
the
bank.
The
stocks
in
the
basket
have
at
least
$10
million
in
average
daily
trading
volume
and
have
performed
well
since
early
2023,
according
to
Goldman.
Here
are
some
of
them.
—
CNBC’s
Michael
Bloom
contributed
to
this
report.
