Global data-center electricity demand has nearly doubled in five years with the US driving growth; power demand pressures lift utility equity valuations and raise long-duration rate expectations.
What moved
Global data-center electricity demand has nearly doubled in five years with the US driving growth; power demand pressures lift utility equity valuations and raise long-duration rate expectations.
The market transmission
The structural surge in US power consumption from AI infrastructure tilts toward higher peak loads and capital intensity in the power sector. Demand-side pressure on electricity supports utility equity multiples and can sustain elevated long-end rate expectations if supply-side investments lag. This is a secular trend rather than a shock, priced gradually, but the scale reported here matters for power infrastructure equities and for the narrative around US energy demand over the medium term.
What would change this
This is structural demand growth, not a shock. Markets have priced much of this already through utility equity positioning. The consequence for rates depends on whether the Fed sees it as inflationary or deflationary relative to forward production capacity; if supply responds, price pressure is muted.
Directional leans
UST10Y ▲ low