S&P: Davos Assumptions for Electricity Supplies Until 2029 are "Impossible"

SadaNews - The assumptions circulating in Davos regarding the world's ability to provide sufficient electricity supplies until 2029 are "literally impossible," given the accelerating demand for energy, especially from artificial intelligence data centers, according to Dave Ernsberger, head of the energy sector at S&P Global.

Ernsberger pointed out, on the sidelines of the forum, that the global discussion has shifted from the concept of "energy transition" to "energy expansion," with a growing recognition that the world will need all available energy sources, rather than replacing one source with another. He added that the world is "currently unprepared" to meet the electricity needs of artificial intelligence, which imposes unprecedented pressures on energy markets.

Ernsberger noted a clear timing clash between energy companies and technology firms, as the former plan over 30 years, while the latter change their decisions every 30 days, which complicates aligning investments with actual demand. He pointed out that supply chains present an additional obstacle, explaining that gas turbines requested for delivery today "may not be delivered before 2030," imposing strict time constraints on expanding generating capacities.