Our Leading Technology Analyst Shares Insights on Investing in the 'Era of Electricity'

The Rise of Electrification

Fatih Birol, head of the International Energy Agency (IEA), recently remarked that we are now living in an era dominated by electricity. While oil and gas will remain significant for years, electricity consumption is expanding at twice the rate of overall energy demand.

This rapid growth in electricity use underscores why renewable energy remains a compelling investment opportunity, regardless of any policy changes in the United States. Birol points out that renewables are increasingly meeting the world’s rising electricity needs, often because they are the most cost-effective choice. In countries such as India, solar power is at the forefront of this transition.

Latest Updates from Barchart

Energy expert Nat Bullard, co-founder of the AI company Halcyon, shared in his annual decarbonization report that solar energy’s share of global electricity production has tripled over six years, now accounting for 12% worldwide.

AI Drives Massive Investment

One of the main drivers behind soaring electricity demand is the expansion of artificial intelligence (AI) infrastructure, particularly the construction of large-scale data centers. Bullard’s research reveals that electricity consumption by data centers worldwide has jumped by 80% in just five years.

Bullard also notes that private investment in AI-related infrastructure in the US is rising, even as other types of investment decline.

He estimates that technology capital expenditures in 2025 could surpass 2% of GDP, outpacing previous waves of industrial and technological development such as the interstate highway system and early broadband rollouts.

This explosive growth in AI is increasingly dependent on the energy sector’s ability to supply vast amounts of electricity.

Global Expansion and Strategic Moves

Masdar, a renewable energy company based in the United Arab Emirates, is at the crossroads of these trends. The UAE is actively investing in the fast-growing data center sector, making it a national priority.

To support its ambitions in AI, Abu Dhabi established the MGX investment fund, which last October led a consortium in acquiring Aligned Data Centers for $40 billion—the largest data center deal ever, adding 5 GW of capacity across 50 sites in the Americas, according to Forbes.

Following this, Abu Dhabi announced the Stargate UAE project in May 2025—a major data center partnership with OpenAI, Oracle, Nvidia, Cisco, and SoftBank.

Given these developments, the UAE is keenly focused on securing the energy needed to power its digital infrastructure. Masdar’s CEO, Mohamed Jameel Al Ramahi, recently told Semafor that while he disagrees with US policy rollbacks on renewables, his company sees opportunities to invest in underperforming American wind and solar assets.

Masdar already holds a 50% stake in California-based solar company TerraGen, boasts 45 GW of renewable capacity, and has another 20 GW in development. The company aims to invest $35 billion over the next four years to reach 100 GW by 2030.

AI Accelerates the Shift to Clean Energy

Some experts believe that the enormous power requirements of AI could actually speed up the global transition to renewables.

Agate Freimane, a partner at venture capital firm Norrsken, told CNBC that renewable energy costs have plummeted by over 90%, and in 2024, 91% of new renewable projects were cheaper than fossil fuel alternatives.

She explains that this creates a positive feedback loop: as clean energy becomes more affordable, electrification accelerates, which increases demand for energy storage and smarter grids—further driving down the cost of renewables. In this way, AI is helping to hasten the adoption of clean energy.

This trend is also fueling growth in the battery sector. Bullard’s report highlights that Germany, having replaced baseload power with renewables, now faces a pressing need for energy storage solutions.

He notes that investment in battery energy storage has risen by $65 billion over the past decade.

Investment Opportunities in Electrification

For those interested in capitalizing on the long-term growth of renewables, there are numerous avenues to explore. Solar energy, in particular, stands out as a promising sector.

First Solar (FSLR) is a leading company in this space, while the iShares Global Clean Energy ETF (ICLN) offers diversified exposure to a range of clean energy firms, including wind and non-public companies, as well as geographic variety for those seeking to spread risk.

Even the most enthusiastic clean energy advocates acknowledge that natural gas will remain a key transitional fuel. Wood Mackenzie forecasts that natural gas will be part of the energy mix through at least 2060. However, direct trading in natural gas can be risky, so pipeline stocks like Energy Transfer (ET)—which offers a strong dividend—may be a more appealing option for income-focused investors.

Bullard also points out that global gas turbine manufacturing capacity is currently insufficient to meet demand, making GE Vernova (GEV) a company to watch, especially given its nuclear energy partnership with Hitachi. Centrus (LEU) is another notable pick, as it supplies the specialized fuel required for small nuclear reactors.

And when it comes to battery storage, the sector is gaining momentum…

Spotlight on EOS Energy (EOSE)

To conclude, let’s take a closer look at EOS Energy (EOSE), a standout in the battery storage industry. The company recently made headlines at Davos by unveiling a significant technological advancement in battery storage (disclosure: the author holds shares in EOSE).

EOSE currently ranks 23rd on Barchart’s Top 100 Stocks to Buy. The stock has achieved 11 new highs in the past month and is on track for its fourth consecutive week of gains. If this momentum continues, it could soon challenge its 52-week high of 19.83.

On Wednesday, EOSE weathered a sharp intraday pullback. Technical analysis using the 13EMA/Pivots template over 30-minute intervals shows an oversold RSI at a “V” bottom, aligning with the week’s previous low and first pivot support.

A strong gap-up on Thursday further reinforced the bullish outlook for the stock.

The daily chart illustrates these recent highs and lows, and technical traders may recognize Wednesday’s candle as a bullish hammer pattern.

John Rowland, CMT, serves as Barchart’s Senior Market Strategist and hosts Market on Close. Additional reporting by Senior Editorial Director Elizabeth Volk.