Last week, Tesla, Sunrun and Renew Home announced a landmark partnership to create what could become the largest virtual power plant (VPP) in the U.S. By combining Tesla Powerwall home batteries, Sunrun’s residential solar and storage systems, and millions of smart devices managed by Renew Home, the companies aim to aggregate more than 16 GW of flexible…
The U.S. Federal Energy Regulatory Commission (FERC) may be approaching one of the most delicate balancing acts of the AI era: reconciling two objectives that increasingly appear to be at odds—shielding utility customers from soaring electricity costs while dramatically accelerating “speed-to-power” for the data centers that will underpin America’s AI ambitions. Recent actions by the…
Initial earnings from ABB, GE Vernova, and Korea-based LS Electric point to a clear and accelerating trend: exceptionally strong order momentum across electrification and power infrastructure, driven primarily by data center demand and reinforced by powerful structural tailwinds. Order intake across the sector has been particularly striking. GE Vernova reported a 71% year-on-year surge in…
Bloom Energy, the second largest holding in our Powering AI portfolio, has announced an expanded partnership with Oracle under which it will deploy up to 2.8 GW of its fuel cell systems (including the 1.2 GW already contracted) to support Oracle’s AI and cloud infrastructure. The deal could generate more than $8 billion product revenue…
We are launching our Powering AI strategy in EUR (with USD hedging). While the USD trajectory has been a source of concern, the outlook for the Powering AI theme has never been stronger. Data center capex continues to surprise on the upside: recent hyperscaler announcements point to roughly $700 billion of spending in 2026, up…
The AI boom has quietly turned electricity into the most valuable input in tech, and the cloud giants are discovering an uncomfortable truth: the grid is not infinite, patient, or cheap. For years, hyperscalers treated power as a background problem, something to hash out with utilities while the real innovation happened in chips and code.…
As we expected, the concerns that emerged in the final months of 2025 and weighed on the AI trade are rapidly fading. Early earnings reports this season have shifted the focus back to what matters most: impressive growth and expanding margins. And worth noting, the equity rally is broadening. While our core AI portfolio is…
Over the past 12–18 months, Tech giants and U.S. utilities have ramped up investments in alternative power sources—particularly nuclear energy and on-site natural gas fuel cells—to address the growing power needs of data centers. Recent deal announcements (Meta with Vistra/Oklo/TerraPower and AEP with Bloom Energy) underscore an accelerating trend, reinforcing Powering AI and Nuclear Power…
The rationale for launching our Powering AI strategy 18 months ago was that the sudden and massive acceleration in electricity demand would force utilities to sharply increase their investments in power generation and transmission, providing a powerful tailwind for equipment suppliers and engineering firms. This capex upside is now becoming clearer, as several major electric…
The recent correction in AI equities increasingly looks like the two major sell-offs of the past 18 months (February–March this year and July-August 2024), suggesting that we are more likely in a healthy profit-taking phase than in the early stages of a bear cycle. The severity, speed, and magnitude are strikingly similar, with AI and…