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AI Industry Boom: $2.8T by 2029, Power Demands Soar

AI's explosive growth is driving massive investments. But can the world's power supplies keep up with the soaring demand?

In this image we can see the information board, buildings, shed, trees, electric cables and sky...
In this image we can see the information board, buildings, shed, trees, electric cables and sky with clouds.

AI Industry Boom: $2.8T by 2029, Power Demands Soar

The global AI industry is booming, with expenditures projected to nearly quadruple by 2029, reaching $2.8 trillion. This rapid growth is pushing companies to invest heavily, with some struggling to fund these expenses solely from profits. Meanwhile, the power demands of new high-performance computers could strain global energy supplies.

Alpine Income Property Trust has been actively investing in AI, with $135.6 million spent on acquisitions and structured investments by September 30, 2025. However, specific companies planning to accelerate investments in the coming quarters remain unclear. The world's leading cloud providers, including Amazon, Google, and Microsoft, are expected to boost their investments due to surging demand. To support the growing number of high-performance computers, power plants with a capacity of 55 gigawatts are needed, equivalent to one-fifth of Germany's total installed power plant capacity.

The AI industry's explosive growth is driving significant investments, with companies like Alpine Income Property Trust leading the way. However, the power demands of this growth pose a substantial challenge, requiring a significant increase in global energy production.

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