🔌 Is AI Draining America's Electricity Supply?

Good morning. US stock futures slid in Thursday morning trading as investors looked ahead to US jobs and GDP data.

⚡ US electricity demand to jump on account of data centers by 2030

📝 Our report: Data centers could gulp down 9% of the US's total electricity by the decade's end, more than double their current snack, as tech companies keep feeding their ever-growing computing hubs, according to the Electric Power Research Institute. Depending on the adoption pace of technology such as generative artificial intelligence (AI), which is fueling the expansion of data centers, and the energy efficiency of new centers, the estimated annual growth rate of electricity use by the industry ranges from 3.7% to 15% through 2030, the institute's analysis said.

 🔑 Key points:

• Data centers, along with expanding domestic manufacturing and electrification of transportation, are lifting the U.S. electricity industry out of two decades of flat growth.

• The centers require massive amounts of power for high-intensity computing and cooling systems, with a new large data center requiring the same amount of electricity needed to power 750,000 homes, according to numerous energy company earnings calls this year.

• "With 5.3 billion global internet users, widespread adoption of these tools could potentially lead to a step change in power requirements," according to the institute, which recommended better data center energy efficiency and more grid investment.

💡 So what: The surge in electricity consumption by data centers in the U.S. by 2030 could strain the national power grid, necessitate significant investments in energy infrastructure, and potentially drive up electricity costs for consumers and businesses. This increase might also amplify carbon emissions unless offset by renewable energy sources, challenging efforts to combat climate change. Additionally, the growing energy demand could spur innovation in energy-efficient technologies and renewable energy integration to manage the heightened load sustainably.

Thursday - Pending Home Sales, New York Fed President John Williams Speaks

Friday - No Major Economic News

📈 Nassim Nicholas Taleb shares these investing tips!

🏡 Everything you need to know about home equity

👨🏽‍💼 These are some of the benefits of owning your own business

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🛢️ Another mega oil acquisition underway as industry consolidates

WHAT: Another day, another mega oil acquisition! This time ConocoPhillips plans to snag Marathon Oil in an all-stock deal worth $22.5 billion, debt included, continuing the recent energy sector shopping spree. The deal would allow ConocoPhillips to diversify its domestic assets, with Marathon's production largely centered in Texas and North Dakota.

WHY: The merger follows a wave of consolidation over the past year as oil giants flush with cash look for ways to put it to use.

💎 BHP scuttles deal for mining giant

WHAT: BHP Group decided to skip making a firm offer for Anglo American Plc, walking away from what could have been the biggest mining deal in over a decade. BHP first approached Anglo with a proposal in mid-April for the smaller company to spin off its majority stakes in two listed South African miners before an all-share acquisition of the rest of the group.

WHY: Anglo repeatedly rebuffed proposals from BHP to partly break up and then acquire the 107-year-old company. The two sides were unable to agree on BHP’s complicated $49 billion deal structure and Anglo said it saw no reason for another delay despite a last-minute appeal from BHP.

🤖 OpenAI signs content sharing deals

WHAT: OpenAI announced it's teaming up with The Atlantic and Vox Media to give its AI a brain boost, thanks to new content and product partnerships. The agreements with The Atlantic and Vox Media come on the heels of several media firms signing similar deals, giving OpenAI access to their news content and archives to train its large language models.

WHY: Such partnerships are not only crucial for the training of AI models, they can also be lucrative for news publishers, which have traditionally been denied a slice of profits internet giants earn for distributing their content.

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