The world is witnessing an unprecedented surge in energy demand driven by the rapid spread of artificial intelligence technologies, putting immense pressure on power sources and grid infrastructure worldwide.

With expectations for continued growth in this sector, public and private investors are racing to accelerate the large-scale development of new data centers. According to data from the International Energy Agency (IEA), global investment in data centers reached half a trillion dollars in 2024 — nearly doubling in just two years.

However, this rapid pace of construction has created a new problem: data center buildouts are outstripping the capacity of electrical grids to expand, leading to critical delays in bringing new facilities online.

The Power Grid Struggles to Keep Up

The IEA’s *Energy and AI* report, published earlier this year, notes that one in every five data center projects worldwide is at risk of delay due to intense pressure on power grids.

The report stated: “The interconnection queues for new projects — both generation and load, including data centers — are long and complex,” adding that building new transmission lines can take four to eight years in advanced economies, while wait times for essential grid components such as transformers and cables have doubled over the past three years.

In the United States, power grids were already aging and overburdened even before the AI-driven boom. With the surge in demand from data center construction, the scale of required upgrades has become enormous.

The US Department of Energy estimates that the country will need about 47,300 gigawatt-miles of new transmission lines by 2035 — a 57% increase in current grid capacity. To meet this target, the current construction pace would need to double.

Data Centers Clustered in Already Stressed Regions

Compounding the problem is the fact that many new data center projects are being built in areas already home to existing facilities — regions where electrical grids are already strained.

In the US, for example, half of all data centers currently under construction are expansions of existing clusters. To ease grid pressure, improve efficiency, and avoid local bottlenecks, it would be far more effective to build new facilities in regions with surplus electrical capacity.

Distributed Energy: A Promising Solution to Ease the Strain

This is where the concept of distributed energy resources (DERs) comes into play.

DERs include small-scale power generation systems such as rooftop solar panels and battery storage units. Unlike traditional grids that transport power over long distances from generation plants to end users, distributed energy systems generate and consume electricity locally.

Building more of these decentralized energy hubs and integrating them with public utilities could serve as a crucial short-term solution to accelerate the deployment of new data centers. They could also help balance loads on local grids during peak hours by providing supplemental energy when needed.

According to a report by *Utility Dive*: “If implemented correctly, this solution could quickly increase computing capacity using existing distribution equipment, transmission lines, and power plants,” adding that it could also reduce energy bills for residents and local businesses.

Balancing Technology and Consumers

Reducing energy costs is critical at a time when energy poverty is rising in both the United States and globally.

In the current model, consumers bear much of the financial burden of integrating AI infrastructure on a large scale — even if they do not benefit from it directly.

However, adopting distributed energy systems could change this equation, as it may encourage technology companies to pay more in exchange for faster and more direct grid connections.

As *Utility Dive* notes: “The more that’s paid, the greater the incentive for owners of distributed resources, and the faster new capacity can be integrated into grids — meaning more money in consumers’ pockets.”

Acceleration in Distributed Energy Development

The development of distributed energy systems is already growing rapidly, as both tech giants and grid operators increasingly recognize their value.

According to research firm Wood Mackenzie, hundreds of gigawatts of distributed energy resources are expected to be added to power grids by 2027 — roughly matching the projected additions from centralized power plants over the same period.

Copper prices fell during Wednesday’s trading session despite a weaker US dollar against most major currencies, as the industrial metal came under pressure from warnings about a potential slowdown in artificial intelligence growth.

Analysts at Trafigura cautioned that global copper prices could face downside risks if the AI sector loses momentum following the sharp expansion seen in industries linked to the technology.

The warning comes at a time when a global copper shortage is reshaping both financial and industrial landscapes — and even the geopolitical one — as demand driven by clean energy transition and rapid technological progress continues to outpace supply growth.

With the expansion of renewable energy initiatives, the spread of electric vehicles, and the acceleration of global digital transformation, forecasts suggest that demand for refined copper could surge from around 27 million tons in 2024 to as much as 50 million tons by 2035.

According to estimates from the International Energy Agency and S&P Global, this growth reflects a broad structural imbalance between supply and demand that could trigger economic disruptions across multiple sectors.

Copper: An Indispensable Pillar of the Modern Economy

Copper’s exceptional conductivity and durability make it an irreplaceable component in energy systems, renewable power projects, and advanced electronics.

As climate policies tighten worldwide, copper’s role has evolved from a basic industrial commodity to a cornerstone of the global transition toward sustainability and clean energy.

The World Bank expects metal production — led by copper — to rise by nearly 500% by 2050 to meet ambitious climate goals.

Market analysts emphasize that investors should view the global copper shortage not as a temporary price cycle but as a long-term structural shift redefining how modern economies are built and operated.

Meanwhile, the US Dollar Index fell 0.3% to 98.7 points by 17:14 GMT, after reaching a high of 99.08 and a low of 98.6.

In trading, copper futures for December delivery declined by 0.4% to 5.00 dollars per pound as of 17:11 GMT.

Bitcoin steadied after a volatile session on Wednesday, as cryptocurrency markets found themselves caught between escalating trade tensions between the United States and China on one hand, and growing investor confidence that the Federal Reserve is nearing an interest rate cut in October on the other.

The world’s largest cryptocurrency slipped 0.2% to 112,292.5 dollars as of 1:30 a.m. Eastern Time (05:30 GMT), after falling to 109,000 dollars on Tuesday before recovering part of its losses.

Bitcoin Pressured by US–China Trade Tensions... Powell Provides Some Support

Renewed trade tensions between Washington and Beijing have been the main factor weighing on Bitcoin in recent sessions. The digital asset plunged sharply late last week to around 103,000 dollars before quickly rebounding from its lows.

Despite the rebound, Bitcoin remains below its recent all-time high of over 126,000 dollars.

At the same time, the crypto market found some support from dovish comments by Federal Reserve Chair Jerome Powell on Tuesday, as he hinted at a possible end to the central bank’s ongoing quantitative tightening program — remarks investors interpreted as a signal toward potential rate cuts.

Powell also noted rising uncertainty surrounding the US economic outlook, particularly amid the ongoing federal government shutdown.

These comments strengthened expectations for a rate cut at the upcoming late-October meeting, with data from the CME FedWatch Tool showing markets now pricing in a 99.6% probability of a 25-basis-point cut, up from 97.4% a week earlier.

Coinbase Invests in India’s CoinDCX at $2.5 Billion Valuation

In a notable development for the digital asset sector, Coinbase Global Inc (NASDAQ: COIN) announced on Tuesday that it had made an undisclosed investment in Indian cryptocurrency exchange CoinDCX, in a move aimed at expanding its presence in the Indian and Middle Eastern markets.

CoinDCX said in a separate statement that the new investment valued the company at roughly 2.45 billion dollars — a significant jump from earlier estimates of less than 1 billion dollars earlier this year. The company also noted that Coinbase has been an investor in CoinDCX since 2020.

Earlier reports suggested that Coinbase had shown interest in a full acquisition of CoinDCX. The US-based exchange recently obtained approval to offer its services in India but still trails rival Binance in terms of reach within the world’s largest crypto user base.

Recent data show that India leads the world in cryptocurrency adoption, with the number of digital asset holders surpassing 100 million by the end of 2024.

Oil prices fell on Wednesday as investors focused on the International Energy Agency’s forecast of a potential supply surplus by 2026, along with renewed trade tensions between the United States and China that could weigh on global crude demand.

Brent crude futures declined by 15 cents, or 0.2%, to 62.24 dollars a barrel at 10:47 GMT, while US West Texas Intermediate (WTI) crude futures fell by 6 cents, or 0.1%, to 58.64 dollars a barrel.

Both benchmarks had settled at their lowest levels in five months during the previous session.

Expectations of a Supply Surplus of Up to 4 Million Barrels Per Day

The International Energy Agency (IEA) said in a report on Tuesday that the global oil market could face a supply surplus of up to 4 million barrels per day next year — a level higher than its previous estimates — as the OPEC+ alliance and other producers increase output at a time when demand remains weak.

Emrel Jamil, senior oil analyst at LSEG, noted that “markets are currently focused on oversupply concerns amid mixed signals on demand,” adding that “waning geopolitical risks and rising trade tensions are adding further pressure on prices.”

US–China Trade Dispute Deepens Concerns

Trade tensions between the world’s two largest economies resurfaced last week after Washington and Beijing imposed additional tariffs on vessels transporting goods between them — a move expected to raise shipping costs, disrupt global trade flows, and potentially hinder global economic growth.

Giovanni Staunovo, oil analyst at UBS, said that “oil prices are currently being driven by the level of trade tension between the United States and China and by the overall market sentiment toward risk.”

Tensions escalated further after China announced last week new restrictions on rare earth metal exports, while US President Donald Trump threatened to impose 100% tariffs on Chinese goods and limit software exports to China starting November 1.

According to Yang An, an analyst at Haitong Futures, “the main factor determining the direction of oil prices in the coming period, alongside US–China trade relations, will be the scale of the supply surplus, which is reflected in changes in global inventory levels.”

Awaiting US Inventory Data to Gauge Domestic Demand

In terms of domestic demand, traders are awaiting weekly inventory data to assess consumption trends in the US market. A preliminary Reuters poll showed that US crude inventories rose by about 200,000 barrels during the week ending October 10, while gasoline and distillate stocks likely declined.

The American Petroleum Institute (API) is scheduled to release its weekly report at 4:30 p.m. Eastern Time (20:30 GMT) on Wednesday, followed by official data from the US Energy Information Administration (EIA) at 10:30 a.m. Eastern Time (14:30 GMT) on Thursday.

Both reports were delayed by one day due to the Columbus Day / Indigenous Peoples’ Day holiday observed on Monday.