Energy scarcity era drives demand for resource investment

The global economy has transitioned from an “era of abundance” characterized by globalized supply chains and just-in-time deliveries to an “era of scarcity.” This shift is driven by structurally higher demand for energy, metals, and resources colliding with geopolitical tensions, fragile supply chains, and years of underinvestment in physical assets.

Key drivers of increasing demand include the expansion of the global middle class, rising defense spending, the electrification of industry and transportation, and the rapid growth of artificial intelligence. Specifically, the International Energy Agency (IEA) projects that electricity demand from global data centers could more than double by 2030 and triple by 2035 compared to 2024 levels.

Recent market volatility, such as price surges in copper and aluminum and fluctuations in oil markets due to Middle East conflicts, highlights the vulnerability of the current economic system. The previous 40-year focus on supply chain efficiency is being replaced by a need for active investment in real assets and energy addition strategies to mitigate economic risks.