Although the Trump administration shows disdain for renewable energy, the stock market remains highly optimistic about renewable energy prospects, believing that an AI-driven new cycle has begun and that these clean energy sources represent the future of the global energy system. After all, traditional resources like coal and oil do not align with global governments' carbon reduction ambitions and will eventually be completely depleted.
Stock market data shows that the S&P Global Clean Energy Index has risen 32% year-to-date, driven primarily by strong gains from U.S. renewable energy giants Bloom Energy (BE.US) and First Solar (FSLR.US). Popular clean energy ETFs trading on U.S. markets have also performed strongly, with the Invesco WilderHill Clean Energy ETF up 49% year-to-date, the iShares Global Clean Energy ETF up 33% over the same period, and the Invesco Solar ETF up 31%, all significantly outperforming the S&P 500 Index, which has gained over 12% this year.
In fact, 2025 is expected to be the year with the largest solar installation capacity in U.S. history, as well as a record year for battery storage installations. In contrast, the S&P 500 Energy Sector Index, which focuses on traditional resources like oil, has only risen 5.5% year-to-date.
Australian mining giant Fortescue Ltd. recently stated that Trump's dismissive stance and criticism of global climate change, along with his continued and severe attacks on renewable energy, will not significantly suppress the strong medium- to long-term demand for clean electricity resources in the U.S. market.
In the United States, the enormous electricity demands from artificial intelligence training and inference systems, combined with the unavoidable emission reduction pressures from global warming, may further drive U.S. technology giants leading AI data center construction to accelerate their comprehensive transition to cheaper, low-carbon energy sources.
Fortescue emphasized that cost-of-living pressures and the surge in electricity usage driven by artificial intelligence will ensure medium- to long-term clean energy demand growth in the United States. Despite political obstacles, renewable energy in the U.S. has already become more economical than coal or natural gas.
Fortescue further emphasized that political factors led by Trump will be overwhelmed by the economic effects of renewable energy. From a stock market performance perspective, renewable energy stocks have actually shown very bright overall price performance since Trump's second term began, highlighting the market's strong optimism about medium- to long-term renewable energy demand curves.
Particularly in the context of the new demand cycle driven by AI, the market is pricing renewable energy demand with both cost-effectiveness and clean attributes toward a strong growth trajectory.
Fortescue Executive Chairman and Founder Andrew Forrest, who is also the founder of the Minderoo Foundation and Tattarang, along with Fortescue's CEO, discussed clean energy adoption and the future of green shipping with energy industry analysts worldwide at Bloomberg Green New York 2025, as well as how this Australian iron ore production giant integrates shareholder value growth into its large-scale decarbonization plans.
Fortescue CEO Dino Otranto said in an interview during the meeting held on Friday that cost-of-living pressures and the surge in electricity usage driven by AI applications will ensure significant growth in U.S. medium- to long-term clean energy demand. He emphasized that despite certain political obstacles, renewable energy in the United States has already become more economically effective than coal or natural gas resources, which is crucial for AI computing clusters pursuing high cost-effectiveness and energy efficiency, as well as AI data centers seeking continuously improved operational efficiency.
"In an inflationary environment, American consumers need lower-cost energy," Otranto said in the interview, adding that renewable energy systems provide such low-cost and clean, cost-effective solutions. "Frankly speaking, political factors will be 'completely overwhelmed' by the economic effects brought by renewable energy."
Renewable Energy Market Share Shows Year-over-Year Growth
Otranto made these comments after the Australian mining giant announced the completion of its acquisition of Spanish renewable technology company Nabrawind SL and signed preliminary agreements with some of the world's top renewable energy leaders for wind turbines, solar panels, and battery storage.
Fortescue Chairman Andrew Forrest, Australia's second-richest person, even criticized Trump's denial of climate science at the meeting.
The chart shows that more electricity globally comes from renewable sources in recent years. Although natural gas energy still dominates, wind and solar systems' share in U.S. power generation has nearly tripled over the past decade, with overall share even exceeding the important 15% threshold.
Since Trump returned to the White House in January to begin his second presidential term, he has strongly supported traditional energy industries including oil, natural gas, and coal, actively rolling back major policies supporting renewable energy and canceling crucial tax incentives. This has led to nearly $42 billion in renewable energy projects being delayed, scaled back, or directly canceled since he took office as president again.
According to International Energy Agency statistics, over 90% of new renewable electricity projects commissioned last year are more productive and cost-effective than any new fossil fuel alternatives. BloombergNEF data shows that accelerating electrification trends and increasing renewable energy could reduce overall fuel costs by up to $19 trillion by mid-century.
As the world's fourth-largest iron ore producer and a major advocate for clean energy systems, Fortescue also plans to deploy a large fleet of battery-electric dump trucks, scheduled for delivery between 2028 and 2030.
AI's End Game is Electricity! AI Wave Sweeps the Globe, Renewable Energy Enters New Growth Era
With artificial intelligence applications like ChatGPT, Claude, and DeepSeek sweeping the globe, the energy demands of major hyperscale AI data centers worldwide are so enormous that some utility stocks, long overlooked by the market, have entered the sights of Wall Street's top investment institutions this year.
Global demand for AI computing power closely related to artificial intelligence training and inference is accelerating. High-performance data centers, already "electricity-consuming beasts," are expected to see their electricity resource demands continue surging in the coming years.
AI data centers represent the most core large-scale infrastructure construction projects of the AI era, crucial for the efficient operation of generative AI applications like ChatGPT and the updating and iteration of AI large models like the GPT series.
The high-energy-consuming AI data centers, expanding exponentially behind the fierce demand for computing infrastructure like AI chips, cannot do without electricity supply as their core foundation. This is the origin of the market view that "AI's end game is electricity."
An International Energy Agency (IEA) forecast report shows that by 2030, global data center electricity demand will more than double to approximately 945 terawatt-hours (TWh), slightly higher than Japan's current total electricity consumption, with artificial intelligence applications being the most important driver of this growth. By 2030, the overall electricity demand of AI-focused data centers is expected to increase more than fourfold.
Goldman Sachs predicted in a report that by 2030, the rapid rise of AI data centers will increase global electricity demand by 165% compared to 2023 levels, thereby transforming infrastructure and energy strategies everywhere.
IRENA's latest cost report shows that the vast majority of new renewable projects in 2024 are already below the overall costs of comparable fossil energy solutions, with solar PV and onshore wind average levelized costs continuing to decline. Therefore, when AI significantly increases global data center electricity demand, lower-cost wind and solar naturally receive priority allocation.
For example, technology giant Microsoft has signed long-term virtual power purchase agreements (PPAs) with multiple renewable developers for 400MW-level projects in the United States; Alphabet has signed a 700MW renewable project portfolio in Oklahoma.
In terms of new installations and levelized electricity costs, renewable energy may soon become the "first choice" for power system expansion in the AI era, supplemented by energy storage, nuclear power, and other sources to complete the supply curve.
In the AI era, clean energy supply becomes increasingly important. The extremely strong demand for clean energy from large data centers like Alphabet and Microsoft stems mainly from the global decarbonization trend, where wind power, geothermal, and other renewable resources focusing on high efficiency, cost-effectiveness, zero emissions, and clean attributes may become the most important sources of the global power generation system.
An analyst team from UBS Group AG stated in a research report that demand for utility-scale solar projects in the United States is gradually exceeding supply, driven partly by the large-scale construction of AI data centers targeting 100% clean energy. This positive factor provides enormous upside potential for the shipment growth curve of the U.S. solar industry and significantly enhances demand certainty.
Additionally, UBS analysts noted that under the protection of Trump's tariff policies, domestic U.S. solar hardware suppliers are all in very advantageous positions.
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