Power and Resources Growth

The report highlights the growing demand for electricity as a key driver of investment opportunities in the power and resources sector. This demand stems from several factors, including the rise of AI data centers, industrial electrification, electric vehicles, and global climate goals. The report states, "The rise of AI data centers, industrial electrification, electric vehicles, and global climate goals is increasing electricity demand." This convergence of trends creates a compelling case for long-term investment in companies involved in power generation, grid infrastructure, and natural resources. The analysis further identifies specific areas within the power and resources value chain that offer the most promising opportunities. These include transmission and distribution, data centers, transport, and energy storage. The report notes, "Currently, we believe the best opportunities are in transmission, distribution, data centers, transport, and energy storage." This targeted approach allows investors to focus on the segments of the market that are most likely to benefit from the increasing demand for electricity. The report also acknowledges the challenges in developing new generation capacity, emphasizing the importance of prioritizing companies with strong financial health and competitive advantages.