Artificial intelligence is rapidly changing what it means to invest in technology. For years, conversations around AI centred on algorithms, large language models and software capabilities. Today, the biggest competition is no longer about who has the smartest model. It is about who can secure enough electricity, computing capacity and physical infrastructure to run those models at scale.
That shift is now reshaping global investment patterns.
The Investment Shift Has Already Begun
According to Deloitte data published by the Financial Times, merger and acquisition activity in the United States power and utility sector reached $203.6 billion during the first five months of 2026, already exceeding the entire value of deals completed in 2025 by more than 40 percent. During the same period, announced investments in data centres reached $151.5 billion, more than double the amount recorded during the corresponding period in 2025.
These are not ordinary infrastructure investments. They are direct responses to the explosive growth of artificial intelligence.
One of the largest transactions announced this year is NextEra Energy’s proposed $112 billion acquisition of Dominion, while Global Infrastructure Partners, owned by BlackRock, together with EQT agreed to acquire AES Corporation in a deal valued at approximately $33 billion. Rather than simply expanding their customer base, utilities are positioning themselves to meet unprecedented electricity demand from hyperscale AI data centres.
AI’s Growing Appetite for Electricity
Research firm Gartner projects that global data centre electricity consumption will reach 565 terawatt hours in 2026, representing a 26 percent increase from the estimated 447 terawatt hours consumed in 2025. By 2030, worldwide data centre power demand is expected to reach approximately 290 gigawatts, more than double today’s level.
Perhaps the most important statistic is where that electricity is going.
Gartner estimates that AI optimised servers will account for 31 percent of total data centre power consumption in 2026. By 2027, these specialised AI servers will consume more electricity than conventional servers for the first time. This reflects the enormous computational requirements of training and operating foundation models, multimodal AI systems and enterprise AI workloads.
Why Big Tech Is Spending Record Amounts
The International Energy Agency recently reported that capital expenditure by five of the world’s largest technology companies exceeded $400 billion in 2025 and is expected to rise by another 75 percent in 2026, largely because of continued investment in AI infrastructure. The agency also warned that power availability, rather than computing hardware, is increasingly becoming the principal constraint on AI expansion.
This explains why energy companies are becoming strategic partners for technology firms.
Chevron recently announced plans to pursue additional projects supplying dedicated electricity to AI data centres following its long term agreement to power Microsoft’s facility in Texas. Its planned Project Kilby, a 2.67 gigawatt natural gas power plant, is designed specifically to supply Microsoft’s AI campus and is capable of generating enough electricity to power a city roughly the size of San Francisco.
Governments Are Entering the AI Infrastructure Race
South Korea on Monday unveiled three national mega projects covering semiconductors, AI data centres and physical AI. Samsung announced plans for domestic investments amounting to 2,450 trillion won between 2026 and 2040, including major semiconductor manufacturing facilities. SK Group also outlined investments exceeding 1,000 trillion won for AI data centres by 2035. Initial AI data centre projects backed by SK Group, GS Group and Naver are expected to support approximately 8.4 gigawatts of computing capacity.
The announcement reflects a growing trend among governments to treat AI infrastructure as a strategic national asset rather than simply a technology industry.
The New Race Is Physical, Not Just Digital
The implication is clear. AI infrastructure is no longer being financed solely by technology companies. Utilities, infrastructure funds, private equity firms, energy producers and governments are now competing to build the physical foundation required for artificial intelligence.
For investors, this represents a structural shift. AI should no longer be viewed simply as a software industry. Increasingly, it is becoming one of the world’s largest infrastructure investment themes, driving demand for power generation, transmission networks, cooling systems, semiconductor manufacturing, data centre construction and long term energy supply.
The next phase of the AI revolution may therefore be decided not only by breakthroughs in machine learning, but by something far more fundamental. It will be determined by who can build enough infrastructure to keep the machines running.
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