The rapid advancement of artificial intelligence is driving a significant surge in electricity demand. In response, Schroders Greencoat, the renewable energy investment arm of Schroders Group, is shifting its focus towards new energy assets linked to data centers.
Schroders Greencoat's Strategy
Duncan Hale, a portfolio manager at Schroders Greencoat, stated that the firm has been investing in relevant platforms and participating in data center project development. He emphasized that as a specialized institution in the energy sector, the company possesses a unique advantage for positioning in this field.
The Scale of AI Infrastructure Investment
Bloomberg Intelligence estimates that by 2030, U.S. tech giants will have cumulatively invested $4 trillion in building artificial intelligence infrastructure. This will generate massive corporate demand for zero-carbon electricity, which must not only meet corporate sustainability goals but also be capable of rapid grid connection and deployment.
Grid Challenges and Energy Storage
According to calculations by the U.S. Energy Information Administration, over a quarter of the large-scale power projects planned for construction in the U.S. by 2026 will be battery energy storage projects. These projects can store surplus electricity and feed it back into the grid during peak demand periods.
However, the growing power demands of AI infrastructure also expose multiple risks, including power shortages, rising electricity prices, and transmission network bottlenecks. Goldman Sachs research indicates that U.S. data center capacity demand will exceed supply by approximately 11.4 GW in 2025, representing a 43% gap. PJM Interconnection, the largest grid operator in the U.S., has also warned that substantial power shortages could emerge as early as 2027.
Tech Giants Enter the Energy Arena
Against this backdrop, technology giants are actively building their own energy assets. In March 2026, Alphabet acquired clean energy developer Intersect Power for $4.75 billion. On May 7, NVIDIA invested up to $2.1 billion in data center operator IREN, with plans to deploy up to 5 GW of AI infrastructure.
Hale noted that constructing a new data center today without securing a stable power connection plan upfront would lead to operational difficulties later. He cited Ireland as an example, where data center electricity consumption already exceeds 20% of total usage, illustrating the increasing pressure AI-related demand places on power grids. Due to concerns over grid capacity, policymakers there have tightened development conditions for new projects.
Return Expectations
Regarding return expectations, Schroders Greencoat estimates that low-leverage, contracted solar photovoltaic projects can deliver long-term annualized returns of around 7%. Emerging assets such as energy storage and energy infrastructure supporting data centers can achieve returns between 12% and 13%.
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