This Unstoppable Trend Could Mint the Industrial Sector's Next Big Winners
Growing energy demands and increasing government support could provide a powerful tailwind for nuclear energy stocks.
Overview
Everyone is talking about hyperscalers, data centers, and chip shortages. But the real bottleneck is energy. Today's cutting-edge artificial intelligence (AI) models demand intense computation, gobbling up significantly more energy per server rack than ever before.
According to research from the Electric Power Research Institute (EPRI), data centers account for roughly 5% of electricity use in the United States. But that could increase to 20% by 2035. This massive increase in power consumption has hyperscalers searching high and low for reliable electricity solutions that reduce their carbon footprints.
Details
Enter nuclear energy. Countries worldwide are aiming to triple their nuclear energy capacity by 2050, and the U.S. has ambitious goals to quadruple its capacity over that same period. This is creating some powerful tailwinds for the nuclear industry and innovators in the space, and could mint some of the industrial sector's next big winners.
Source
Originally published at www.fool.com.