Reported 9 months ago
Senior journalist Li Jinqi on June 26, 2024, at 6:16 am. Ahead of the NVIDIA shareholder meeting scheduled for the early morning of the 27th in Taiwan time, global AI industry's potential is in the spotlight. PGIM Prudential believes that infrastructure sectors capable of riding the AI growth train have become a new choice for corporate funds. With AI advancements significantly increasing electricity consumption, both power plants and digital infrastructure are experiencing a rapid rise in investment due to the booming demand. The market anticipates a substantial increase in US data center electricity consumption over the next four years due to AI integration, with a projected annual growth rate of up to 30%. As AI-driven development escalates, the focus on electricity-related infrastructure and data centers has intensified, with market funds targeting AI infrastructure themes. Moreover, with the participation of the US cloud giants like Microsoft, Google, Meta, and Amazon in the AI hardware arms race, data centers have become a key investment area in AI infrastructure. JP Morgan's report suggests a doubling of global data center capital expenditures over the next five years, reaching an estimated value of approximately USD 296 billion by the end of this year and nearly USD 587 billion by 2028, signaling significant market interest in AI infrastructure themes.
Source: YAHOO