While 2025 was about the chips, 2026 is about the plug

⚠️ Not Financial Advice
These are the personal views and research of the Nomad Investor. Nothing published here constitutes financial advice. Always consult a licensed financial adviser before making investment decisions.

In 2026, the conversation in global markets is shifting from silicon chips to power plugs. As artificial intelligence (AI) and cloud computing accelerate, the demand for energy is outpacing supply, with global data centre power demand projected to rise 17% this year alone. This surge is putting energy availability at the centre of tech growth—and at the heart of new investment opportunities. Enter the “Powering AI” ecosystem: a burgeoning sector of infrastructure firms delivering on-site, carbon-neutral energy solutions for tech giants, bypassing outdated and unreliable public grids.

" TABLE OF CONTENTS "

Zipli Table of Contents

At the forefront of this evolution is a resurgence in nuclear energy, particularly small modular reactors (SMRs), and advances in grid-scale storage. Both technologies have become critical as governments and corporates scramble to address skyrocketing power prices and the environmental ramifications of fossil fuels. For investors, this is more than just an energy story—this is a once-in-a-generation opportunity to capitalise on the infrastructure that will underpin the AI-driven economy.

What’s Happening

Global data centres are now responsible for approximately 2% of total electricity consumption, according to the International Energy Agency (IEA). With AI workloads demanding exponentially more computational power, estimates indicate that energy use by data centres could triple by 2030 if solutions aren’t implemented to improve efficiency. However, the challenge isn’t just about consumption—it’s about distribution and supply reliability.

Public grids, particularly in the US, Europe, and Australia, are showing their age. In 2022, Australia alone experienced a 3.7% increase in wholesale electricity prices, driven by grid bottlenecks and rising fuel costs. With consistent blackouts and outages, the current grid infrastructure is failing to meet modern demands. As a result, tech titans like Microsoft and Google are increasingly investing in on-site power generation to ensure operational continuity.

This backdrop has catalysed a “Nuclear Renaissance,” with private investment in SMRs surging. Unlike traditional nuclear reactors, SMRs are smaller, safer, and quicker to deploy, often within 3–5 years. They are also being paired with grid-scale battery storage to create reliable, 24/7 power solutions. Key players in this space, such as Rolls-Royce and NuScale Power, are already securing contracts to provide energy specifically for data centres.

The Data Behind the Story

The numbers tell a compelling story. Global investment in nuclear energy reached $49 billion in 2025, up 14% year-on-year, according to BloombergNEF. Within this, SMRs accounted for $9 billion, reflecting growing confidence in the technology. Meanwhile, the grid-scale battery market is also booming, with total capacity installed in 2025 rising 68% compared to the previous year.

Stat Spotlight: By 2030, SMRs are expected to generate 90 GW globally, up from less than 5 GW today, according to the IEA.

In Australia, the focus on energy transformation is particularly acute. The Australian Energy Market Operator (AEMO) has warned that the country faces a potential 10% shortfall in power supply during peak summer months by 2028 if no new investments are made. This has spurred local initiatives, including a $2 billion federal fund for renewable energy zones, which could dovetail with private SMR projects.

Metric	2025	2026 (Projected)
Global Data Centre Power Demand	240 TWh	280 TWh
SMR Investment	$9 Billion	$12 Billion

What This Means for Investors

For Australian and global investors, the “Powering AI” ecosystem presents opportunities across multiple asset classes. Infrastructure funds are a natural starting point, with major players like Brookfield Asset Management and Macquarie Group already positioning themselves in SMRs and grid-scale storage.

Public equities also offer targeted exposure. Companies like Fluence Energy (battery storage) and NuScale Power (SMRs) are gaining traction, as are renewable energy ETFs that include advanced nuclear technologies. For those seeking diversification, private equity funds focused on energy innovation could be a compelling option.

Opportunity Highlight: Consider infrastructure REITs that specialise in data centre energy solutions, such as Digital Realty or Equinix, which are integrating renewable power into their facilities.

Key Risks to Watch

Regulatory Delays: Nuclear projects, even SMRs, often face lengthy approval processes. This could delay returns for investors.
Cost Overruns: While SMRs are cheaper than traditional nuclear plants, unexpected costs could erode profitability.
Geopolitical Risk: Supply chain dependencies for critical SMR components, such as uranium, could pose challenges.
Technological Competition: Advances in other energy sources, like hydrogen, could sideline nuclear investments.

Warning: Investors should be cautious of over-leveraged companies entering the energy space without proven technology or market share.

Nomad Investor Takeaways

Energy availability is becoming a critical driver of tech growth, particularly for AI and cloud computing.
SMRs and grid-scale storage are emerging as key investment themes within the “Powering AI” ecosystem.
Australian investors should watch for opportunities in local renewable energy zones and infrastructure funds.
Consider diversifying into nuclear-focused ETFs or equities like NuScale Power and Fluence Energy.
Monitor regulatory developments to better gauge investment timelines for nuclear projects.
Be wary of geopolitical risks tied to uranium supply chains and other critical materials.
Infrastructure REITs with renewable integration offer a balanced way to play this trend.