As AI Companies Race for Power, Amazon and Google Have the Lead (6 minute read)

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Summary

Amazon has a leading position in data center capacity and power for AI, but Google is expected to close the gap by 2030.

Amazon has an incumbent advantage in the race for hyperscalers to get their hands on more electricity. It has been building tons of data centers over the past two decades. The company is expected to add the most data center and power capacity in the US through 2030. However, Google will have significantly closed its gap with Amazon by that time.
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Utility companies like Constellation Energy, NextEra Energy, and Vistra are reporting concrete earnings growth and raising guidance due to AI data center power demands, backed by multi-year contracts with hyperscalers such as Meta, Microsoft, and Google, though risks exist if AI spending slows.