The artificial intelligence boom is fueling demand for power, with many tech companies rapidly developing infrastructure as they compete for dominance. Power needs are only set to rise in the coming years, as large language models require a lot of data center capacity. Data centers house vast amounts of computing power needed for AI workloads, and are intense power-guzzling workhorses. But the need for power goes beyond data centers and other infrastructure, according to Goldman. “AI innovation has not only driven the demand for technology infrastructure, such as semiconductors, data centers and cloud services, but also the demand for power in manufacturing and AI computation processes,” it said in a May 24 note. Goldman cited studies which showed that AI data centers can consume up to 10 times the energy of their regular counterparts. ChatGPT search queries are also estimated to be six to 10 times more power-intensive than regular Google searches, the Wall Street bank added. Goldman also expects “surging” electricity consumption in Asia, especially in “tech-exposed” markets such as China, Taiwan, South Korea and India. “For China, the economy is rebalancing towards areas of higher productivity and greater self-sufficiency,” said Goldman. “One of the core strategic growth objectives is achieving technological self-sufficiency, which involves more policy support to the technology sector and the advancement of AI and the digital economy.” China is making progress in energy self-sufficiency, which requires renewable energy systems equipped with sufficient energy storage capacities and smart grid transmission capabilities, Goldman noted. Taiwan’s tech industry extends across a “comprehensive global AI supply chain,” with tech manufacturers consuming a “substantial” amount of power. It’s a similar story in South Korea’s economy, Goldman noted, with high-tech manufacturing in areas such as semiconductors and memory chips and consumer electronics. “For India, apart from computational demand from software & services companies, an uptick in foreign companies relocating their supply chains from China is boosting power demand,” the bank added. Power and electricity stock basket Against that backdrop, the bank introduced what it called its power and electricity basket of stocks, comprising 50 stocks across China, South Korea, Taiwan, India and Australia. It covers the supply chain of electricity-related business, including power generation or transmission, electric equipment and energy commodities. Among other areas, it excludes solar manufacturers in China, owing to U.S. tariffs. “The basket is positioned to leverage the growing power demand driven by tech manufacturing and data centers, as well as advancements in electricity transmission capacities,” said the bank. The stocks in the basket have at least $10 million in average daily trading volume and have performed well since early 2023, according to Goldman. Here are some of them. — Tech Zone Daily’s Michael Bloom contributed to this report.