DATA & FIGURES
The AI economy consumes enormous amounts of power, with a single ChatGPT query consuming roughly 10 times the energy of a Google search. Industry forecasts from McKinsey put AI data center capital expenditure at roughly $5.2 trillion between now and 2030, while Goldman Sachs Research projects global data center power demand will surge up to 165% by 2030 compared to 2023 levels.
THE SCENARIO
The world is facing a severe shortage of clean, reliable, large-scale electricity, with the timeline to fix it running ten to fifteen years at a minimum. This shortage is everywhere, and the people who already hold AI-grade power capacity, in the right jurisdictions, with the right cost structure, are sitting on something that the rest of the AI economy needs and cannot replicate.
DIRECT QUOTE
"The petrodollar century is winding down, and the AI power century is winding up." — Josh Owens, Content Director at Oilprice.com
BBN INSIGHT
The Positive Side: Companies that secure AI-grade power capacity will have a strategic advantage in the next economic era, with the potential to dictate terms to the rest of the economy. The Negative Side: The shortage of clean, reliable, large-scale electricity will lead to increased costs and decreased competitiveness for companies that are unable to secure AI-grade power capacity. This will have significant implications for the global economy, with the potential to exacerbate existing inequalities and create new ones.
MARKET REACTION
The price of Bitzero Holdings Inc. (NASDAQ: AIBZ) stock has surged in recent months, as investors recognize the company's strategic position in the AI power market. The UAE's Phoenix Group has also been investing heavily in AI and crypto infrastructure, with a 20.8% equity stake in Bitzero and a board seat.