Electricity inflation: the next big story .
Energy = electricity. We want to decouple energy from oil. We want to argue that energy, especially in this day and age, means electricity, more so than oil. So it is important that investors, companies and policymakers think that way. China is certainly pushing hard in that direction, given the number of nuclear reactors it has under construction.
The Middle East and certainly Saudi Arabia would like to become the data center capitals of the world. Oil is much more expensive to transport than data. With the wealth of potential solar energy, they are positioned to meet the increasing energy demands of AI and data centers.
For a decade, from 2010 to 2020, the price of electricity rose less than 12% in America as measured by the Consumer Price Index (CPI). Since then, it has increased by almost 35%. What most people experience in terms of electricity bill inflation is underestimated by this CPI calculation. Below is an indication of this underestimation.
