.jpg)
1 hour ago
4
Article content
(Bloomberg) — Renewable-energy investor Schroders Greencoat is targeting newer data center-linked assets as AI fuels a surge in electricity demand.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
“More recently, we’ve also made investments into platforms to help develop sites for data centers,” said Duncan Hale, a portfolio manager at Schroders Greencoat, a part of Schroders Plc’s private markets business. “We’ve got as energy specialists a real role to play in that space.”
Article content
Article content
US tech giants will spend $4 trillion on AI infrastructure through 2030, according to estimates from Bloomberg Intelligence. That will trigger huge demand by the firms for emissions-free electricity that meets their sustainability goals but which also can be brought online quickly.
Article content
Article content
More than a quarter of new large-scale US power projects planned for 2026 will be battery installations, which can store excess electricity and feed it back to the grid during periods of high demand, according to estimates from the US Energy Information Administration, a federal data agency. Still, the growing electricity needs of AI infrastructure are also exposing risks of power shortages, rising electricity prices and bottlenecks in transmission networks.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
“If you are building a data center today and you haven’t done a lot of work in terms of how you’re going to access that power, that is a position I wouldn’t want to be in,” said Hale.
Article content
He pointed to Ireland as an example of growing pressure on grids from AI-related demand, noting that data centers account for more than 20% of electricity consumption there and policymakers have tightened conditions for new developments because of grid-capacity concerns.
Article content
Schroders Greencoat expects long-term returns of roughly 7% for contracted solar assets that are financed with limited debt and as much as 12% to 13% for newer technologies such as batteries and energy infrastructure linked to data centers.
Article content
Read BI: Data Centers May Reach 14% of Power Demand by 2030
Article content
English (US)