Arm Holdings plc (NASDAQ:ARM) is one of the 10 Stocks Entering June on Fire. Arm Holdings kicked off the first day of the month soaring to a new all-time high, as investors resorted to a flurry of positive developments, including Nvidia Corp.’s launch of new chips built on its architecture and two analysts’ optimistic rating […]
Arm Holdings plc (NASDAQ:ARM) is one of the 10 Stocks Entering June on Fire. Arm Holdings kicked off the first day of the month soaring to a new all-time high, as investors resorted to a flurry of positive developments, including Nvidia Corp.’s launch of new chips built on its architecture and two analysts’ optimistic rating […]
Renewable-energy investor Schroders Greencoat is targeting newer data center-linked assets as AI fuels a surge in electricity demand. “More recently, we’ve also made investments into platforms to help develop sites for data centers,” said Duncan Hale , a portfolio manager at Schroders Greencoat, a part of Schroders Plc’s private markets business. “We’ve got as energy specialists a real role to pla...
Renewable-energy investor Schroders Greencoat is targeting newer data center-linked assets as AI fuels a surge in electricity demand. “More recently, we’ve also made investments into platforms to help develop sites for data centers,” said Duncan Hale , a portfolio manager at Schroders Greencoat, a part of Schroders Plc’s private markets business. “We’ve got as energy specialists a real role to play in that space.” US tech giants will spend $4 trillion on AI infrastructure through 2030, according to estimates from Bloomberg Intelligence. That will trigger huge demand by the firms for emissions-free electricity that meets their sustainability goals but which also can be brought online quickly. More than a quarter of new large-scale US power projects planned for 2026 will be battery installations, which can store excess electricity and feed it back to the grid during periods of high demand, according to estimates from the US Energy Information Administration, a federal data agency. Still, the growing electricity needs of AI infrastructure are also exposing risks of power shortages, rising electricity prices and bottlenecks in transmission networks. “If you are building a data center today and you haven’t done a lot of work in terms of how you’re going to access that power, that is a position I wouldn’t want to be in,” said Hale. He pointed to Ireland as an example of growing pressure on grids from AI-related demand, noting that data centers account for more than 20% of electricity consumption there and policymakers have tightened conditions for new developments because of grid-capacity concerns. Schroders Greencoat expects long-term returns of roughly 7% for contracted solar assets that are financed with limited debt and as much as 12% to 13% for newer technologies such as batteries and energy infrastructure linked to data centers. Read BI: Data Centers May Reach 14% of Power Demand by 2030
A boom in artificial intelligence-related borrowing may become a bigger influence on bond markets over time, but the idea that it’s behind a recent rise in long-dated Treasury yields appears overstated, according to Pacific Investment Management Co. Debt-funded AI investment could eventually lift risk premia — the extra return investors demand to hold riskier or longer-dated assets — but that proc...
A boom in artificial intelligence-related borrowing may become a bigger influence on bond markets over time, but the idea that it’s behind a recent rise in long-dated Treasury yields appears overstated, according to Pacific Investment Management Co. Debt-funded AI investment could eventually lift risk premia — the extra return investors demand to hold riskier or longer-dated assets — but that process is likely to play out over years, Pimco multi-asset credit strategist Lotfi Karoui wrote in a report . For now, higher long-dated Treasury yields are better explained by shifting expectations for the Federal Reserve’s interest-rate path as the Iran war fans inflation risks, he said. “Structural pressures from the AI buildout are real, but they are growing slowly, not driving the yield moves investors are watching right now,” Karoui wrote. “Cyclical factors still support the hedging role of bonds.” Treasuries have sold off in recent weeks as investors increasingly bet the Fed may need to keep rates higher for longer after the Iran war spurred the biggest inflation surge since 2023. The move has also raised questions about whether other forces are pushing up long-term borrowing costs. Among the factors cited by analysts include concerns about mounting US debt burdens and the financing demands of the AI boom. Tech companies have sold more than $300 billion of bonds to US investors, prompting debate over how much additional borrowing markets can absorb and whether the surge in issuance could spill over into sovereign debt markets. Yields on benchmark 10-year Treasuries have risen more than 50 basis points from this year’s low to 4.45% Tuesday in Asia. Those on 30-year Treasuries have climbed more than 30 basis points. Traders have pivoted from pricing rate cuts before the war to a more than 60% chance of a Fed rate hike by December. Karoui said the “duration supply shock” from AI borrowing has yet to fully arrive. He pointed to measures including the Bloomberg US Corporate ...