{"id":4208,"date":"2025-08-17T05:45:22","date_gmt":"2025-08-17T05:45:22","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/4208\/"},"modified":"2025-08-17T05:45:22","modified_gmt":"2025-08-17T05:45:22","slug":"why-electricity-inflation-is-the-next-big-economic-story","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/4208\/","title":{"rendered":"Why Electricity Inflation Is the Next Big Economic Story"},"content":{"rendered":"<p>By Peter Tchir of Academy Securities<\/p>\n<p>A few months ago, we started to regularly check in on the Tariff Revenue chart. We look forward to getting the next \u201clarge\u201d number in a little less than 2 weeks.<\/p>\n<p>In the meantime, this chart has attracted our attention. Full credit to zerohedge for pounding the table on it, but it fits a few of our themes quite well:<\/p>\n<ul>\n<li><strong>Energy = Electricity<\/strong>. We have started trying to\u00a0<strong>disassociate energy with oil<\/strong>\u00a0and make sure we highlight that\u00a0<strong>energy, in this day and age, means electricity even more than oil<\/strong>\u00a0and it is important for investors, corporations and politicians to think that way.\n<ul>\n<li>It makes some of the charts about\u00a0<a href=\"https:\/\/www.zerohedge.com\/ai\/latest-edition-tracking-worldwide-nuclear-reactor-projects\" rel=\"nofollow noopener\" target=\"_blank\"><strong>nuclear projects in development<\/strong>\u00a0<\/a>really raise your eyebrow (<strong>China<\/strong>\u00a0is pushing hard in this direction).\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/nuclear%20reactors%20under%20construction.png?itok=0pmAKRCH\" data-image-external-href=\"\" data-image-href=\"http:\/\/oilprice.com\/s3\/files\/inline-images\/nuclear%20reactors%20under%20construction.png?itok=0pmAKRCH\" data-link-option=\"0\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images lozad\" alt=\"\" width=\"500\" height=\"378\" data-entity-type=\"file\" data-entity-uuid=\"67611aa7-2627-4a82-989c-775335c7b23c\" data-responsive-image-style=\"inline_images\" src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/08\/nuclear reactors under construction.png\"\/><\/a><\/p>\n<\/li>\n<li>It also fits in with our theme that the Middle East, and Saudi Arabia in particular are pushing to become the data center capitals of the world. Oil is far more expensive to move than \u201cdata\u201d and with a wealth of potential solar energy, they are positioned to meet the rising energy demands of AI and data centers. Also, buying a lot of high powered chips from American chip companies is a quick way to reduce trade surpluses.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Potential risks to the AI spend<\/strong>. We highlighted issues and the focus on electricity demands in this weekend\u2019s\u00a0<a href=\"https:\/\/academysecurities.com\/macro-strategy-insights\/tariffs-ai-prosec-and-trumps-to-do-list\/?asmac=4b5dd6ae-5a59-48ea-89d1-92622af9a2e0\" rel=\"nofollow noopener\" target=\"_blank\">Tariffs, AI and ProSec\u2122<\/a>\u00a0report. (yes, we are trying to get\u00a0<strong>ProSec or Production for Security<\/strong>\u00a0to stick).<\/li>\n<li>While this is not something we have shared, I can admit that I\u2019m in a losing battle with my \u201csmart\u201d thermometer which seems to want to set the temperature to \u201cmelt\u201d and manages to turn it higher than I want on a regular basis, and each software \u201cupdate\u201d seems to only empower the \u201csmart\u201d thermometer more. I\u2019m having Hal\/Space Odessey moments with my thermometer. Maybe it is just me, but it is increasingly annoying, but I digress\u2026<\/li>\n<\/ul>\n<p><img decoding=\"async\" alt=\"\" title=\"\" data-large=\"true\" class=\"lozad\" src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/08\/1755199314-o_1j2l0g4bmbnqms61djsu0gkc58.jpg\"\/><\/p>\n<p><strong>For a decade, from 2010, to 2020, electricity, as measured in CPI, rose less than 12%. Since then it has risen almost 35%!<\/strong><\/p>\n<p>We are all well aware of changes in gasoline prices. We fill up the car periodically and most gas stations publish their prices so we see them when we drive by.<\/p>\n<p>We get hit with electricity bills once a month, so maybe it isn\u2019t as noticeable, but I suspect in the coming months, there will be a LOT more discussion by people about the rise in energy prices.\u00a0<strong>Who cares what happens to gasoline prices, if electricity is inflating by almost double digits annually?<\/strong><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">In one year, this will be the most popular chart on this site <a href=\"https:\/\/t.co\/h93gWXMoNL\" rel=\"nofollow\">pic.twitter.com\/h93gWXMoNL<\/a><\/p>\n<p>\u2014 zerohedge (@zerohedge) <a href=\"https:\/\/twitter.com\/zerohedge\/status\/1954980347030163526?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\" target=\"_blank\">August 11, 2025<\/a><\/p><\/blockquote>\n<p><strong><br \/>Electricity generation is one of the biggest opportunities out there.\u00a0<\/strong>As prices rise, and politicians focus, it could create even more opportunities. While it is probably a long way from slowing the AI spend, it will be important for that industry to keep focused here (and they already are in a big way) as keeping as much here as possible would be great (remember the Saudis, amongst others are preparing to compete and that could present some security threats).<\/p>\n<p><strong>Anyways, not urgent or alarming, but I do think interesting.<\/strong>\u00a0Btw, given my overall thoughts on CPI, I suspect that the CPI calculation is understating what most of us experience in terms of inflation on our electric bill.<\/p>\n<p>Via Zerohedge.com<\/p>\n<p><strong>More Top Reads From Oilprice.com<\/strong><\/p>\n<p><\/p>\n<p>\t\t\t\t\t    <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"By Peter Tchir of Academy Securities A few months ago, we started to regularly check in on the&hellip;\n","protected":false},"author":2,"featured_media":4209,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[291,79,179,18,4625,4627,19,17,790,4626],"class_list":{"0":"post-4208","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-ai","9":"tag-business","10":"tag-economy","11":"tag-eire","12":"tag-electricity","13":"tag-gasoline","14":"tag-ie","15":"tag-ireland","16":"tag-politics","17":"tag-power-generation"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/4208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=4208"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/4208\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/4209"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=4208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=4208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=4208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}