Consumer and business demand for AI-intensive products and services is growing at an unprecedented rate. Experts project that the economy will continue to funnel billions of dollars into the industry over the next several years.

While artificial intelligence is undoubtedly one of the most important business developments of this age, it’s important to think about more than just the commercial benefits of AI-powered products and services. Another key consideration is the infrastructure that makes it all possible.

Energy Companies Are the New “Big Tech”

Tech stocks have long been (and will likely continue to be) some of the hottest investments on the market. However, their steep price can put them out of range for some investors, and many have been searching for alternative ways to invest in AI development.

Over the last few years, the answer has presented itself in the form of infrastructure. As AI development enjoys its time in the spotlight, so are data centers.

Corporations working on AI software projects need somewhere to store the massive amounts of computing power required to push these innovative ideas forward. As a result, many cities are seeing a rise in data center investment and development.

Still, the data center real estate itself is just the beginning. Experts predict that the next big investment boom will be in the energy infrastructure companies that power these hyper-scale data centers.

Forget About Nvidia Chips: Renewable Energy Sources Are the Next Hot Ticket

Tech giant Nvidia, a primary provider of the chips that drive AI development, has been on a major bull run in the market since 2023. Though the stock has received a lot of attention, it’s also hit a few snags in recent times.

Geo-political issues with China and an effort to keep advanced AI chips out of the hands of the country’s leaders have hampered production and sales. As capacity tightens, the business (and, occasionally, the share price) has taken some hits.

Investors are looking elsewhere, and renewable energy is capturing their attention. It’s expected to surpass the use of coal energy worldwide in 2025, something that’s never occurred before. Clearly, this is a growing sector and one that data centers are looking to for power solutions.

It’s important to note that data center developers have some concerns about renewable energy, including the fact that it may not be reliable enough to meet current data center demands.

While some are calling for a return to fossil fuel usage, this may not be the answer, either, as raising carbon emissions has been shown to negatively affect the environment.

The Environmental Dilemma Sets the Stage for Renewable Energy’s Spotlight Moment

Regardless of where it comes from, data centers need reliable electricity. Without it, they can’t provide the amount of power corporations need to move forward with their AI developments. For now, industry leaders are looking at two important solutions: natural gas microgrids and battery storage.

According to microgrid provider Enchanted Rock’s founder and CEO Thomas McAndrew, “AI data centers can ease grid pressure and provide surplus power back to the grid, supporting the expansion of wind and solar, thus reducing costs and carbon emissions.”

Clearly, sustainable and cost-effective solutions are within reach. It’s this balance between reliable power and environmental friendliness that makes renewable energy the best AI investment around. To learn more about this pressing issue, read the original article by Binance user Cryptopolitan.