This Friday wrap-up of In Good Company with Nicolai Tangen focuses on the surge in US electricity demand driven by AI and data centers. Key discussions include the growing importance of nuclear power and battery storage, highlighted by NBIM's first investment in a US battery platform. Nicolai also shares reflections from his month in New York, noting increased concerns about cyber attacks and inflation among CEOs.
Summarized by Podsumo
CEO John Ketchum of NextEra Energy expects US power demand to grow sixfold by mid-2040s, primarily driven by AI and data centers, transforming the energy sector from a 'boring' space to a booming one.
NBIM made its first direct investment in a battery storage platform in the US, a 10% stake in a venture with Brookfield, aiming to create the largest battery platform in the country.
Nicolai is spending a month in New York for the fourth consecutive year, meeting with 50 US CEOs and observing increased worries about cyber attacks ('dark October'), inflation, and geopolitical risks.
The podcast notes that major tech companies plan to spend over $600 billion on data centers this year, leading to community pushback over higher electricity prices and AI-related job fears.
NBIM's unlisted renewable energy infrastructure investments have accelerated recently, now equivalent to 10% of Norway's total energy generation capacity, after initially being slow due to high competition.
"The whole energy space was really a boring space in the past, you know, flat as a pancake. And now, suddenly, because of increased demand for electricity and energy worldwide, these companies are growing really, really fast."
"We think that could be the biggest battery platform in the US, and so we are very pleased to be an investor here."
"I kind of wake up nearly European time in New York, so I got a little time in the morning, read the papers, and just orientate myself about what's going on. I mean, so fun, you know."