Why AI’s Energy Demand Could Reshape Global Markets

At the 2025 Bloomberg New Economy Forum, Temasek CEO Dilhan Pillay Sandrasegara discussed what will drive the most durable cash flows and long-term outperformance in global markets. He explained that investors must now build portfolios that are both resilient to shocks and forward-looking towards major structural shifts. While technology and climate remain central themes, he emphasised that AI is the single biggest transformation underway—yet its future hinges on energy availability. With AI’s soaring compute needs driving unprecedented energy demand, he warned this has become a critical risk in scaling future models. He also outlined the intensifying AI race between the United States and China, where each leads in different layers of the ecosystem. The outcome of this competition, alongside the world’s ability to meet AI’s massive energy requirements, will shape where capital, innovation and long-term returns ultimately flow.