FamousNo7

#Manutd #Finance

[Trevor Noren @trevornoren]

FT: "Morgan Stanley now estimates, based on a total data-centre power requirement of 257GW by 2028, a gap of between 30 and 40% between US capacity and sales projections. Or to put it in layperson’s terms: 'NYC demands 5.5-6 GW of baseload power: we are short power by six New York Cities.'"

I believe the market continues to underestimate the intractability of the data center electricity challenge. As I dissect in my recent report on "The AI Trade" (https://t.co/wQQNniS2kj):

Even if data center builders are able to find the labor they need, that does not mean they can find the power they need. States are increasingly requiring data center projects to secure adequate power supply prior to breaking ground, whether from legacy grids or by supplying their own power. As we’ve highlighted in our reports previously, from the mid-2000s to the early 2020s, the US saw almost no electricity demand growth. In 2025, electricity generated grew by 2.8%, with data centers accounting for 55% of that growth, according to the EIA. Annual growth between 2% and 3% is expected through the end of the decade, with data center electricity demand more than doubling from 31 GW in 2025 to 66 GW in 2027.

Undoubtedly, data center providers are making best efforts to head off that challenge, working to shore up energy supply chains and build on-site power generation and battery storage capabilities. However, gains from those efforts are likely to still prove inadequate relative to the seismic electricity needs of data centers. For one, gas turbines are reportedly sold out through 2030, with prices spiking 195% since 2019. For another, delivery lead times for high-voltage transformers have ballooned from about a year in 2020 to upwards of two to four years.

In the months and years to come, we expect states to only tighten data center power supply requirements, leading to more delays in data center approvals. This is especially true given the effect data center electricity demand is having on electricity prices. As the Dallas Fed concluded in a March report: “Existing data centers have already increased wholesale prices by 2 to 6% on average nationwide, with substantially larger effects in regions hosting major data center corridors. Extending the model through 2028, we show that if proposed construction proceeds under high-utilization scenarios, wholesale prices could rise dramatically (50%).” The more Americans connect their affordability challenges to the AI buildout and exert their political influence, the more data center projects we expect to be delayed."

For my next report, I'm planning a dedicated deep-dive on "Global Electricity Undersupply". The challenge obviously goes well beyond data centers in a global economy electrifying across many fronts, from manufacturing to transportation to businesses and homes. Far more to come!

FT link: https://t.co/w2zue9FoFU

[Sky Sports Premier League @SkySportsPL]

The Premier League’s 'Bermuda Triangle’ are taking over! 👀

[Lucas Sanders 👊🏽🔥🇺🇸 @LucasSa56947288]

🚨BREAKING: Donald Trump told the UN that he’s changing the name of Artificial Intelligence to "Super Intelligence" and says that all US government documents will now be changed to refer to "SI"

(LOL!) 🤣

[Kevin Carey @Kevin_Carey_WB]

Qatar Eurobond issuance supplement. Note the Q2 oil and gas revenues. #OOTT. https://t.co/hz8hkXBMP9

[Chemistnath @Chemistnath]

The only person wants problem but Problem don't want him 😂

[Steve Rattner @SteveRattner]

SpaceX, Anthropic, and OpenAI are worth more than every U.S. tech IPO of the past 45 years combined.

[FamousNo7 @iruvilo]

@MihrThakar Fish don't like English

[Crested Capital @CrestedCapital]

@CmaUganda
We did not even get a notice. What happened? Is this Africanicity

[Citizen TV Kenya @citizentvkenya]

Nelson Havi: If the buyer was Vodacom Group then the transaction ought to have been completed in that manner

FCPA Hesbon Omollo: Vodafone Kenya is registered in Kenya and the group is in South Africa. It is the same #CitizenDayBreak

[Fabrizio Romano @FabrizioRomano]

🚨 José Mourinho: “I was expecting to find a different La Liga compared to the past… they told me NO, I wanted to believe that was the case”.

“But it’s the SAME. It has not changed”.

[Chioma 🇺🇬 @Chiomabtq]

Ugandan Airlines Cabin Crew arriving at Entebbe Airport from Gatwick UK. Just here wondering why they have big luggage yet other airlines cabin crews always have small luggage 🤷🏻‍♀️

[Financial Times @FT]

Just published: front page of the Financial Times, UK edition, Monday 21 September https://t.co/EVrBLhdjZx

[HECTOR•KE™ @magudhaland]

Thank you Brighton for giving me chances to use this video

[JH @CRUDEOIL231]

Here u r. JPM on oil.

Gotta respect her guts, what's the point of modeling this mess? The entire board can literally flip in a day.

#oott #iran

[The Kobeissi Letter @KobeissiLetter]

BREAKING: President Trump publishes his “top 25 accomplishments of term three.”

[Charlie Robertson @CharlieTTEcon]

And a reminder that if you don’t feel you’re the best at your job

60 of 74 economists polled by Bloomberg, as of last week, expected the next Fed move to be a cut (in 2027)

Not a single FX strategist early in March 2025 called June 2025 $/EUR rate

Then there’s oil analysts

[陈东成 @fncischen]

Pretty insane PhD job market spillover problem in China.

Shenzhen Middle School has over 100 teachers with a PhD, and 150 graduates of Tsinghua/PKU, 100+ alum of Harvard, Oxford, Cambridge

You don’t need a PhD in Electrical Engineering from Tsinghua to teach middle school math…. but the job market in China basically forces that lol

[Bloomberg @business]

Indian-born bankers have led global financial giants from Deutsche Bank and Citigroup to Barclays. Yet at home, the country’s lenders can face a string of challenges finding executives for the top job. Read more: https://t.co/IiBSMpBI7F

📷️: Dhiraj Singh/Bloomberg