🎙️ podcast Analysis December 06, 2025 Bloomberg Intelligence

The Data Center Power Crunch: Why Gas Utilities Are the Hidden AI Infrastructure Winners

Data Center REITs Natural Gas Utilities Power Infrastructure
Tickers
1 Pick
Conviction HIGH
Risk Profile 2.5/10 (MODERATE RISK)
Horizon 18-36 months

Executive Summary

Data center power demand will reach 106 gigawatts by 2035—a staggering 36% increase from BNEF's forecast just six months ago. This acceleration, driven by AI infrastructure buildout, is creating unprecedented strain on regional power grids. The PJM region, anchored by Northern Virginia's massive data center hub, faces a projected 9.5 gigawatt supply shortfall by 2030 if all announced projects come online. While hyperscalers chase nuclear headlines and sustainability commitments, the harsh realit...

Key Investment Opportunity

Data Center REIT Capital Allocation Paradox

Equinix and Digital Realty face massive AI-driven demand but must raise enormous capital to fund development. REIT investors traditionally hate dilutive capital raises for risky development projects. This creates a valuation disconnect where demand is clear but execution risk is high. The seven-year...

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