The Decade of Power: Why the Energy Opportunity is Bigger Than AI

The market is obsessed with AI as the sole driver of energy demand, but the "Saaspocalypse" of February taught us that picking AI winners is a volatile game. In this episode, Mark Jones from Resolution Capital explains why the real opportunity lies in the "picks and shovels" that power the modern world: Electricity Utilities. We dive into why Resolution Capital has doubled down on utilities (60% of the portfolio), the reality of the US re-shoring trend, and why this is a multi-decade structural shift that remains underappreciated by the broader market. In this episode, we discuss: - Defining a great investment: What separates a "good" asset from a truly "great" infrastructure investment in the current macro environment? - Post-Saaspocalypse lessons: How the February crash in AI-adjacent software reshaped the way Resolution Capital views "AI beneficiaries." - The utility overweight: Why electricity utilities are now more than double the size of the next largest position in the fund. - The energy thesis (beyond AI): AI consumes a massive amount of power, but is that the only reason to own these stocks? We look at the intersection of decarbonisation and digitisation. - The "Re-Shoring" factor: How much of the US energy demand relies on the return of manufacturing, and would a change in the White House administration kill this trend? - Spotting the obvious: When an investment theme looks "too easy," the returns are usually gone. Mark explains what the market is still missing about the demand side. - Managing risk: From regulatory hurdles to the "build-out" risk—can we actually build too much infrastructure? - The Australian angle: Does Mark hold any local names in that 60% power allocation? - Stock in focus: A deep dive into a "great utility" currently held in the portfolio and why it fits the Resolution Capital framework. Resources for this episode Resolution Capital Website Resolution Capital Infrastructure Fund Ask a question (select the Investors podcast) Show partner resources ETF investor? Go beyond ordinary with Global X: View all funds Visit TermPlus to learn more Rask Resources All services Financial Planning Invest with us Access Show Notes Ask a question We love feedback! Follow us on social media: Instagram: @rask.invest TikTok: @rask.invest DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg Learn more about your ad choices. Visit megaphone.fm/adchoices