🔋 🇺🇸 🤖 The AI revolution is running into a power bottleneck:

US data center IT power demand is projected to surge +755% from 2025 levels, reaching a record 78.57 gigawatts by 2029.

This year alone, demand is expected to jump +95% to 17.96 gigawatts, and then another +97% in 2027.

This comes as US data centers are set to require 97 gigawatts of power in the 2026 to 2028 period.

Meanwhile, only 21 gigawatts are under construction, and 19 gigawatts of grid capacity are available, leaving a potential 57-gigawatt shortfall.

The gap is widening as increasingly powerful AI systems require far more electricity, while power supply is struggling to keep pace.

At the same time, more complex servers built around Nvidia’s Vera Rubin and Rubin Ultra architectures are expected to push IT power demand 5x from 2025 to 2028.

The AI buildout is running into a significant power constraint.

📎 KobeissiLetter

🛢 🌐 📉 80% of global oil production now comes from post-peak fields.

Just 10% comes from fields that have yet to reach their peak... we are barely looking for new oil fields.

The Iran war is exacerbating this problem.

Normally, elevated oil prices lead to an increase in CapEx spending.

This time, Big Oil sees this clusterfuck going on and decides to return more cash to shareholders rather than investing to grow production.

Over the medium to long term, this will lead to lower production levels and higher oil prices.

📎 Lukas Ekwueme

🇺🇸🛢 The Trump administration on Tuesday offered to lend up to 40 million barrels of crude from the Strategic Petroleum Reserve, the Energy Department said, as fuel prices remain near record highs seven months into the US-Israeli war on Iran.

The barrels are the last tranche of the 172 million the US pledged in March to an International Energy Agency release of 400 million barrels coordinated among about 30 countries. The same 40 million barrels were offered in June, but companies agreed to borrow only about 500,000.

The release is structured as an exchange, not a sale: companies borrow the oil and later return it with additional barrels as a premium. Bloomberg says bids are due on October 6.

The reserve held 283.8 million barrels as of Sept. 25, its lowest level in 44 years, according to Energy Department data.

🔗 DropSite

🤖 The AI buildout is becoming the largest infrastructure boom in US history:

AI infrastructure spending is projected to average 3.63% of US GDP annually from 2025 to 2032, far exceeding the investment intensity of previous major infrastructure booms.

By comparison, railroads averaged 2.24% of GDP from 1870-1890, highways 1.13% from 1956-1973, while telecom and fiber averaged 1.1% from 1996-2003.

This comes as total investment in data centers and related AI infrastructure is projected to reach $10.3 trillion over this period.

The spending is driven by the rapid construction of data centers and the infrastructure required to support increasingly large AI systems.

However, this expansion is consuming scarce labor and electricity, increasing costs for other businesses and crowding out other investment.

The scale of the AI investment is extraordinary, but so is the economic risk if the spending fails to generate sufficient returns.

🔗 Global Markets Investor

🇪🇺 EU pays $113bn extra for energy without ‘one extra molecule’ of gas or oil as a result of the Iran and Russo-Ukrainian Wars

European officials say the situation exposes how untenable Europe’s reliance on imported fuel has become

The EU has spent more than $113 billion in additional energy payments this year without receiving any additional gas or oil in exchange, European Energy Commissioner Dan Jorgensen said in Dublin on 29 September.

“We have now surpassed €100 billion that we’ve paid extra for our energy this year without receiving one extra molecule of gas or oil,” he said.

Jorgensen spoke ahead of an informal meeting of EU energy ministers in the Irish capital, as the bloc weighs the cost of a bill that has piled up since the start of the US-Israeli war on Iran in late February.

The warning came after US President Donald Trump threatened to ban US diesel exports, a move that sent petroleum product prices sharply higher and alarmed the EU – which imports roughly half of its diesel directly from Washington.

Asked whether Washington had offered the bloc any guarantees, Jorgensen said he had sent US Energy Secretary Chris Wright a clear message on the ban, which he said was “not in the interests of anybody, not the US, not us.”

He added that he was encouraged by Wright publicly distancing himself from the measure. While the EU faces no supply crisis, Jorgensen said, the approaching winter season looks challenging enough that the bloc wants “to eliminate any uncertainties that can be eliminated.”

At the beginning of September, European benchmark gas futures surged to their highest level since January 2023 after Washington launched fresh waves of strikes on Iran.

Dutch front-month futures jumped 5.9 percent to €73.95 ($83.82) per megawatt-hour, as traders braced for a prolonged halt to liquefied natural gas (LNG) shipping through the Strait of Hormuz just weeks before the cold season.

🔗 https://thecradle.co/articles-id/40234

🌹 🇺🇸 ✡️ Zohran Mamdani on X:
The Talmud teaches that anyone who sustains one soul, has sustained an entire world. For generations, Jewish New Yorkers have sustained our city. Today, we are launching the first-ever municipal Strategy to Combat Antisemitism.

Together, we will ensure Jewish New Yorkers are safe and celebrated. We will invest in their protection, their history, and their future.

Our safety and our thriving are tied together.

📎 Mayor Zohran Mamdani