How to Make Money From the Booming Demand for Energy - Odd Lots Recap
Podcast: Odd Lots
Published: 2026-01-15
Duration: 51 minutes
Guests: Tyler Rosenlicht
Summary
The episode explores the rapid increase in global energy demand and the investment opportunities it presents. Tyler Rosenlicht discusses the changing landscape of infrastructure investing and the potential for growth in utilities, data centers, and nuclear energy.
What Happened
The episode dives into the growing global demand for energy, with Tyler Rosenlicht highlighting how infrastructure investing has evolved from stable assets to more volatile, tech-linked investments. One major area of growth is data centers, which require significant energy and capital investment, contributing to the rising demand for electricity.
Rosenlicht notes that utility companies face challenges due to high capital requirements, which can lead to affordability issues. However, certain utilities may outperform due to higher growth rates and lower trading multiples, presenting investment opportunities despite the challenges.
The conversation touches on the potential for renewables to supply an additional 55,000 terawatt-hours to reduce coal consumption. This aligns with a broader global push towards decarbonization, although stability and availability of energy remain prioritized over cleanliness.
Nuclear energy is positioned as a reliable and clean option that can meet both traditional and alternative energy needs. Rosenlicht describes nuclear as a 24/7, low-variable-cost resource, which could see its capacity increase in the coming decades as part of a phased approach.
The episode discusses how countries, especially China, are investing heavily in nuclear to achieve greater energy self-sufficiency in a post-COVID, post-Russia-Ukraine era. This includes stopping shutdowns, restarting plants, and potentially building new facilities by 2040.
Rosenlicht also examines the regulatory risks and operational challenges associated with infrastructure investments, particularly in politically unstable regions. He highlights the role of public-private partnerships and government intervention in critical minerals and resources to stimulate supply and mitigate risks.
Key Insights
- Data centers are a major growth area in energy demand, requiring significant electricity and capital investment, which contributes to the increasing global energy needs.
- Renewable energy has the potential to supply an additional 55,000 terawatt-hours, which could significantly reduce coal consumption and align with global decarbonization efforts.
- Nuclear energy is positioned as a reliable, low-variable-cost resource that can operate 24/7, with potential capacity increases expected over the coming decades.
- China is heavily investing in nuclear energy to enhance energy self-sufficiency, including stopping shutdowns, restarting plants, and planning new facilities by 2040.