AI Fuels Surge in Energy and Rare Earth Demand, Prompting Major Investments

Artificial intelligence is projected to drive a sharp increase in global energy demand, with U.S. electricity needs expected to rise 60% by 2045. Companies such as Bloom Energy are seeing rapid revenue growth as data‑center operators expand AI‑focused power infrastructure, highlighted by a $25 billion partnership with Brookfield Asset Management and a deployment plan from Oracle.

AI is also emerging as a new driver of rare‑earth element demand. Sprott Asset Management notes that the five largest hyperscale data‑center operators will spend about $400 billion in 2025, and that AI‑related cooling systems could account for roughly 3% of magnet rare‑earth consumption by 2030. This adds to existing demand from defence and clean‑energy sectors, prompting investors to view rare‑earths as a strategic commodity tied to national security and energy infrastructure.