The surge in AI development is driving record investments in power infrastructure, prompting a wave of innovative energy solutions and sparking a high-stakes race to meet increasing data centre electricity demands.
The artificial intelligence boom is increasingly becoming an electricity story, and investors are rushing to finance the companies that may help solve it.
This year has already seen at least 10 power infrastructure and clean technology companies come to market, raising more than $11.6 billion, according to market data compiled from recent flotations. That is the highest total on record for the sector, and it has been driven by a simple proposition: if AI is going to keep expanding, it will need far more power than the current grid can comfortably provide.
BloombergNEF estimates that US data centre demand will rise to more than 77 gigawatts by 2030, up from 41 gigawatts in 2025. The consultancy also says that the 14 largest publicly listed data centre operators globally are on track to spend close to $750 billion on capital expenditure this year, compared with just under $450 billion last year.
That surge has created a powerful tailwind for companies promising dependable, scalable electricity, including geothermal, fuel cells, batteries and gas-backed hybrid systems. It has also encouraged investors to back technologies that are still in the process of reaching commercial maturity.
Fervo Energy, a geothermal developer that has become one of the clearest symbols of the trend, raised $1.89 billion in an upsized listing in May and jumped on its trading debut. TechCrunch reported that the company’s enhanced geothermal technology, which drills deeper to reach hotter rock formations, briefly pushed its market value above $10 billion. The firm plans to develop 500 megawatts of capacity at its Cape Station project in Utah, with the potential to scale much further.
Chief financial officer David Ulrey told Bloomberg that newer technologies do not have access to the same financing tools as established power businesses, helping explain why the public market has become so important. As one banker put it, the appeal is not only the technology itself but also the prospect of finding customers willing to pay for round-the-clock supply.
That customer base increasingly includes the biggest names in technology. Cash-rich groups such as Meta Platforms, Amazon and Microsoft have helped propel the wave of interest by backing new energy solutions and accepting more development risk than traditional utilities might. Jefferies analyst Julien Dumoulin-Smith said the current surge is “the culmination of years of grinding work to commercialize technologies and find offtakers”.
The scramble is extending well beyond geothermal. In April, Bloomberg reported that Oracle had agreed to buy up to 2.8 gigawatts of fuel-cell power from Bloom Energy for AI data centres, including an initial 1.2 gigawatts already contracted for use in US projects this year and in 2027. The deal underscored how urgently operators are seeking reliable supply.
Operators are also turning to less orthodox combinations. Bloomberg has reported that data centre developers are pairing batteries with on-site gas generation, a mix that reflects the pressure to secure power quickly rather than wait for ideal decarbonised solutions to be built out. BloombergNEF says it has tracked 4.9 gigawatts of storage announcements co-located with fossil fuel generation at data centres, accounting for about a third of announced global on-site battery capacity.
The political backdrop has also helped some of these businesses. Geothermal developers have benefited from a friendlier White House stance, while President Donald Trump has been especially vocal in supporting nuclear power as a source for data centres. Even technologies he has criticised, such as wind and solar, can still attract capital if they are seen as part of the AI power supply chain.
For investors, the opportunity is obvious. But so is the risk. The sector’s new listings are coming at a time when valuations are being driven by future demand rather than proven scale, and not every bet will work. As TD Cowen managing director Jeff Osborne warned, “You’ll have likely some winners and roadkill along the way.”
That tension may define the next phase of the AI infrastructure trade: a race to build enough electricity, fast enough, to keep the data centres running.
- https://finance.yahoo.com/energy/articles/ai-energy-crunch-investors-searching-130000398.html?.tsrc=rss – Please view link – unable to able to access data
- https://techcrunch.com/2026/05/13/geothermal-startup-fervo-energy-pops-33-in-ipo-debut-fueled-by-ai-data-center-demand/ – Fervo Energy, a geothermal energy startup, saw its market valuation surpass $10 billion in its public market debut, driven by demand from AI data centres. The company raised $1.89 billion in an upsized initial public offering, with the stock price increasing by 33% on its first day of trading. Fervo’s enhanced geothermal technology, which drills deeper to tap into hotter rocks, has attracted interest from tech companies and investors seeking reliable, 24/7 power sources for data centres. The company plans to develop 500 megawatts of capacity at its Cape Station power plant in Utah, with potential for up to 4 gigawatts of capacity.
- https://www.bloomberg.com/news/articles/2026-04-13/oracle-agrees-to-buy-power-from-bloom-for-ai-data-centers – Oracle Corp. has agreed to purchase up to 2.8 gigawatts of fuel-cell power from Bloom Energy Corp. to supply data centres for artificial intelligence work. An initial 1.2 gigawatts of capacity has already been contracted and will be used this year and in 2027 at Oracle projects in the US. A gigawatt is enough electricity to supply about 750,000 US households at any one time. This agreement highlights the growing demand for reliable and clean energy sources to power AI data centres.
- https://about.bnef.com/insights/data-centers/ai-data-center-build-advances-at-full-speed-five-things-to-know/ – The digital infrastructure boom is continuing apace despite jitters in equity markets and fears of a ‘bubble’. The capital expenditure of the 14 largest publicly owned data centre operators globally is seen close to $750 billion this year against a little less than $450 billion last year. They are procuring more energy than ever while private investors are pouring money into AI companies. Over 23 gigawatts (GW) of data centre capacity was under construction globally at the end of September 2025, with about three quarters of it coming up in the US, as per the latest estimates from BloombergNEF. The US alone hosts 15.9GW of ongoing construction.
- https://www.bloomberg.com/news/articles/2026-04-24/data-centers-pair-batteries-and-natural-gas-to-get-power-faster – The scramble to find enough power for artificial intelligence has data centre operators looking for any solution. An unexpected one taking root pairs batteries — long seen as a key to adding more renewables — with fossil fuels. BloombergNEF has tracked 4.9 gigawatts of energy storage announcements that are co-located with on-site fossil fuel generation at data centres. That’s about 32% of announced global on-site data centre battery capacity. The sites include some of the largest AI data centre complexes under development, such as Elon Musk’s Colossus supercomputer in Memphis, Tennessee, and the combo has become so popular that companies such as Caterpillar Inc. and GE Vernova Inc. have announced products or partnerships pairing energy storage with gas generation.
- https://aiweekly.co/alerts/clean-energy-power-firms-raise-record-116b-in-ai-fueled-ipos – At least 10 power and clean-tech companies went public in 2026, raising over $11.6 billion, the most on record for the sector. US data centre capacity demand is projected to grow from 41 GW in 2025 to over 77 GW by 2030, per BloombergNEF. Fervo Energy’s geothermal IPO raised $1.9 billion, popped 33% on Nasdaq debut, and became the largest clean-energy IPO on record. This surge in IPOs underscores the growing investor interest in companies that can meet the escalating energy demands of AI data centres.
- https://about.bnef.com/insights/clean-energy/ai-data-centers-energy-and-finance-dispatch-from-the-bnef-summit-new-york-2026/ – As one of the world’s elite financial hubs, New York is home to thousands seeking to better understand the hottest investment trends. So it was no surprise when AI data centre developers, power providers, financiers and other experts spoke at BNEF’s annual Summit on April 21-22 in Manhattan, attendees were all ears. Surging demand for AI compute power is directly impacting US and global electricity demand. As a result, related sectors – energy, grids, chips, batteries and buildings – are having a moment too and were front and center during the event. Seven broad themes emerged from the Summit.
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The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The article discusses recent developments in AI infrastructure and energy solutions, including Fervo Energy’s $462 million funding round in December 2025 and Bloom Energy’s partnership with Oracle in April 2026. These events are current and relevant. However, the article’s publication date is not provided, making it difficult to assess its freshness accurately. Without a clear publication date, it’s challenging to determine if the content is recycled or outdated. The lack of a publication date raises concerns about the article’s timeliness and originality. Given these uncertainties, the freshness score is moderate.
Quotes check
Score:
6
Notes:
The article includes direct quotes from various individuals, such as David Ulrey, CFO of Fervo Energy, and Julien Dumoulin-Smith, a Jefferies analyst. However, without specific publication dates for these quotes, it’s difficult to verify their originality and context. The absence of verifiable sources for these quotes raises concerns about their authenticity. Given these uncertainties, the quotes check score is moderate.
Source reliability
Score:
5
Notes:
The article references reputable sources like BloombergNEF and TechCrunch. However, without specific publication dates and direct links to these sources, it’s challenging to assess the reliability and independence of the information. The lack of verifiable sources raises concerns about the article’s credibility. Given these uncertainties, the source reliability score is moderate.
Plausibility check
Score:
7
Notes:
The article discusses plausible developments in AI infrastructure and energy solutions, such as increased demand for data centers and investments in clean energy technologies. However, without specific publication dates and verifiable sources, it’s difficult to confirm the accuracy of these claims. The absence of verifiable sources raises concerns about the article’s credibility. Given these uncertainties, the plausibility check score is moderate.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): LOW
Summary:
The article discusses recent developments in AI infrastructure and energy solutions, referencing events such as Fervo Energy’s $462 million funding round in December 2025 and Bloom Energy’s partnership with Oracle in April 2026. However, the article lacks a clear publication date, making it difficult to assess its freshness and originality. Additionally, without specific publication dates and direct links to the original sources, it’s challenging to verify the authenticity and independence of the information presented. Given these uncertainties, the overall assessment is a FAIL with low confidence.
