BlackRock says investors are increasingly favoring energy and infrastructure stocks over Big Tech as the preferred way to benefit from artificial intelligence growth in 2026. The shift reflects a growing recognition that AI’s expansion depends as much on physical capacity as on software innovation.
The world’s largest asset manager noted that while technology giants remain central to AI development, the next phase of growth is being shaped by electricity availability, grid stability, and large-scale infrastructure investment.
Power Demand Becomes the AI Bottleneck
According to BlackRock, AI data centers are among the most energy-intensive facilities ever constructed. Training and running advanced models requires enormous computing power, pushing electricity demand to levels comparable with entire cities.
This surge is driving investor interest in utilities, renewable energy developers, nuclear operators, and companies involved in grid upgrades. These businesses are increasingly viewed as essential enablers of AI rather than secondary beneficiaries.
Valuations Cool Appetite for Big Tech
Another key factor behind the shift is valuation. After years of strong gains, many Big Tech stocks are trading at elevated multiples. BlackRock said investors are now seeking more balanced exposure by allocating capital to sectors with steadier earnings and clearer long-term demand.
Energy and infrastructure assets often benefit from regulated returns, long-term contracts, and predictable cash flows, making them attractive in a more selective market environment.
Infrastructure Emerges as the “Picks and Shovels” Trade
Beyond power generation, the rapid buildout of AI data centers is boosting demand for transmission networks, cooling systems, construction services, and specialized real estate. BlackRock described these areas as the “picks and shovels” of the AI boom—profiting from expansion regardless of which AI platform or model leads the market.
Data center infrastructure and industrial suppliers are now drawing increased attention from long-term investors.
Governments Add Long-Term Support
Public policy is also reinforcing the trend. Governments across the U.S., Europe, and Asia are investing more in grid modernization, clean energy capacity, and energy security. BlackRock said these initiatives align closely with the needs of AI-driven economies.
A Broader View of AI Investing
BlackRock emphasized that this rotation does not diminish Big Tech’s importance. Instead, it highlights a broader understanding of how AI value is created across the economy. As AI scales globally, the companies supplying power and infrastructure may prove just as critical as those building the algorithms.
