Macro

The IEA forecasts global data center electricity consumption will surge from 460TWh in 2022 to over 1,000TWh by 2026, driven by AI and cryptocurrency workloads. This growth poses significant challenges for energy infrastructure, especially in regions like Ireland and the US, prompting calls for tighter regulations and efficiency innovations. Market implications include rising pressure on power grids and increased investment in cooling tech and renewable integration by operators like Microsoft and Schneider Electric.

Uranium spot prices surged to $101 per pound, driven by supply constraints, geopolitical tensions, and rising demand for nuclear energy. Key players like Cameco and Kazatomprom are restarting production, while U.S. legislation and global clean energy goals boost market momentum. Higher prices may increase nuclear fuel costs and accelerate investment in new mining and reactor projects.

The Biden administration has temporarily halted approvals of new liquefied natural gas (LNG) export projects to non-free-trade-agreement countries, citing outdated environmental and economic analyses and climate risks. The pause affects pending applications, including major projects like Calcasieu Pass 2, but exempts existing authorizations and potential national security exceptions, maintaining supply to allies. The move supports environmental justice goals and could shift investment toward renewables, signaling tighter scrutiny for future fossil fuel infrastructure.

Amazon Web Services has acquired Talen Energy’s 960MW Cumulus data center campus in Pennsylvania, powered by the Susquehanna nuclear plant, in a $650 million deal. The transaction includes a long-term power purchase agreement and positions AWS to scale AI and cloud infrastructure with carbon-free energy. The move highlights growing demand for secure, sustainable power in hyperscale computing, boosting valuations for integrated energy-data ventures.

Goldman Sachs Research forecasts a 160% increase in data center power demand by 2030, driven by AI's high energy requirements compared to traditional computing. This surge, led by US and European data centers, could double carbon emissions and reshape global electricity markets.

PJM’s capacity auction for the 2025/26 delivery year cleared at $269.92/MW-day — roughly nine times the prior auction’s $28.92 — with zonal caps hit at $466.35 in the BGE zone and $444.26 in Dominion; the total cost to consumers jumped from $2.2 billion to $14.7 billion. Plant retirements, rising load including datacenters, and new risk-based accreditation rules made capacity suddenly scarce, a windfall for incumbent generators such as Vistra, Constellation and Talen.

Constellation Energy plans to restart the Three Mile Island nuclear plant by 2028, selling power to Microsoft under a 20-year agreement to support AI data centers, marking a major step in nuclear's resurgence. The $1.6 billion restart and renaming of the plant underscores growing tech-sector demand for carbon-free energy, with significant implications for grid planning and nuclear policy. The deal boosted Constellation's stock 22%, reflecting investor confidence in nuclear energy's role in meeting rising electricity demand.

Google has signed a deal to buy power from Kairos Power's small modular reactors to meet rising data center energy demands and support clean growth. The agreement signals strong market demand for scalable, emissions-free nuclear energy, as tech giants seek reliable power for AI expansion. This move underscores a growing trend of tech companies investing in nuclear to meet sustainability goals and energy reliability.