A new group of traders is engaging in US power markets due to the rise in generative AI, according to Sarah Kiernan of Goldman Sachs. The increasing demand from data centers, electric vehicles, and onshoring is driving power needs.
Data center power demand is projected to grow 165% by 2030. Hedge funds and asset managers are increasingly interested in power derivatives, seeking opportunities in this expanding market. Key regions like Virginia and Texas are experiencing notable power consumption increases.
The shift to renewable energy also contributes to the optimism in the power sector. This growing focus on power markets signifies the broadening impact of AI innovation on various asset classes.
Finsum: Take this in combination with crypto and we could potentially see a boost in significant boost in demand for natural gas.
