Apollo executive Dave Stangis stated that the gap between the energy required for AI and the current global energy supply is significant, and renewable energy alone is insufficient to drive the artificial intelligence era. To address this energy shortfall, there is a global race to increase 'every source of energy.' Since 2022, Apollo has committed or allocated approximately USD 600 billion towards energy transition, infrastructure, and sustainability-related investments.
The biggest bottleneck facing the artificial intelligence revolution may not be chips, but electricity.
On October 22, media reports cited Dave Stangis, an executive at the private equity giant Apollo Global Management Inc., as saying that the enormous energy gap posed by AI development may not be bridged within our lifetime.
He stated in an interview:
“There is a significant gap between the demands of artificial intelligence and the current capacity of global power grids to generate and transmit electricity, and this gap will not be bridged within our lifetime.”
This statement directly highlights that the fundamental constraint driving AI development is electricity. He also noted that sustainable energy investors need to accept the reality that renewable energy alone is insufficient to power the AI era.
To address the challenge of the electricity shortfall, the world is racing to increase “every source of energy,” which Stangis referred to as “energy addition.” He emphasized that the top priority for the world today is “energy addition,” not just focusing on “energy transition.”
At the same time, he argued that while “energy addition” is necessary to drive AI development, it does not mean abandoning clean energy. Energy storage, transmission, and distribution capabilities are equally critical to success. Stangis stated:
“Energy expansion is a fact, and I believe that energy transition is equally undeniable.”
Meanwhile, Stangis believes that investing in clean energy and decarbonization technologies remains a profitable strategy. Since 2022, the company has committed or arranged approximately USD 60 billion in investments related to energy transition, infrastructure, and sustainability, far exceeding half of its target of achieving USD 100 billion by 2030.
Stangis stated:
"I firmly believe in transformation and am seeking investment opportunities in industrial decarbonization, renewable energy, and all areas related to storage and the power grid."
Editor/Rocky
