“Civilisation advances by extending the number of important operations we can perform without thinking.” Alfred North Whitehead
We invented machines to make life easier, and now they’re asking for something in return.
We built these models, these data centres, these vast computational minds to boost productivity and solve problems faster than we ever could.
And they are doing that. But they also come with a quiet price: they run on electricity, and a lot of it.
A surprising amount.
A single large data centre can consume the same electricity as two million homes.
Regions that have become hubs for cloud computing have seen electricity prices rise by over 250% in five years.
And the International Energy Agency expects global power demand to nearly double by 2050, with AI accounting for more than half of that new consumption.
Analysts at Goldman Sachs project a substantial increase in data centre power consumption, forecasting a rise of over 160% by the year 2030.
This part has been making headlines, and it may be the most consequential economic story of the decade:
The future of intelligence depends on the future of energy.
And right now, the grid we rely on was built for a different world.
The Counterintuitive Shift
You might expect the solution to be more solar panels or more wind turbines. And yes, we need them. But renewables alone can’t power a world that wants intelligence running 24/7.
- The wind doesn’t always blow.
- The sun doesn’t always shine.
- And AI does not take the afternoon off.
This is where the story takes a turn: nuclear energy, especially in its newer, smaller, modular form, is becoming practical again — not ideological, not nostalgic, just practical.
SMRs (small modular reactors):
- Can be built in 2–3 years
- Can be mass-produced
- Can sit next to data centres or industrial clusters
- Produce steady, carbon-free power day and night
Think of them as the server racks of the energy world: standardised, scalable, plug-in-able.
And momentum is already here:
- France gets ~67% of its electricity from nuclear and enjoys Europe’s most stable prices.
- China has 33 reactors under construction and is on track to surpass U.S. nuclear capacity by 2030.
- The U.S. expects 63% growth in nuclear output by 2050, backed by $350 billion in federal and private investment.
Global investment in nuclear power has surged over the past four years.
Even Silicon Valley is placing direct orders. Google. Microsoft and Amazon.
When tech companies start buying power at the source, something structural is shifting.
But Let’s Be Honest
This isn’t a smooth ride.
- Costs are still high on early SMRs.
- Regulators move slowly.
- The skilled workforce needs to triple.
But every major technology follows the same arc:
Expensive → Scaled → Inevitable
Solar did it.
Semiconductors did it.
Batteries did it.
Nuclear is simply the next to walk that curve.
So, Why Does This Matter for Investors?
U.S. AI capital expenditures are forecast to surpass $500 billion in both 2026 and 2027.
You just can’t ignore trends that are showing exponential growth will come from:
Energy demand is:
- Structural
- Long-term
- Geopolitically strategic
- Tied directly to AI, defence, and manufacturing
This is why sustainable energy is a core theme in the YFS Intelligent Wealth Fund.
Not because it sounds good — but because it’s where the world is actually going.
We seek exposure to the platforms that will power data centres and industrial growth. Nuclear (alongside renewables) is shaping up to be the backbone of that long-term thesis.
In the end, the story is simple: the world is getting smarter, and smart systems need power. Energy isn’t just another sector; it’s the foundation everything else stands on.
The investors who recognise that now will be the ones positioned for what comes next.
The winners are those who think in decades, not quarters.
Awet Ghirmay, Head of Investment Research
If you want to learn more about this topic, please find the link here.
More information about our fund can be found here: Hargreaves Lansdown or AJ Bell.
Risk warnings
The value of investments and the income derived from them may fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. This blog is based on my own observations and opinions.
