Power and Resources Reliability

Corporate meetings in DC and Texas reinforce a 'Reliability supercycle' investment theme driven by AI-led power demand and geopolitical redundancy requirements. Goldman Sachs remains bullish on infrastructure contractors and energy providers as Reliability becomes the primary customer imperative.

Key Takeaways

• 1.Reliability has emerged as the top customer priority, often outweighing affordability, driven by AI power growth and the need for global supply chain redundancy.
• 2.The US is entering its first energy demand-driven up-cycle since 2003-07, with electricity consumption forecasted to grow at a 3.2% CAGR through 2030.
• 3.Infrastructure contractors are increasingly gaining pricing and 'terms-and-conditions' power due to the critical nature of their services in the reliability supercycle.

Table of Contents

• Why the Reliability investment theme is still compelling
• How long can the Reliability supercycle last?
• Strong demand remains from hyperscalers
• Bullish E&C through-the-project margins
• Aging infrastructure – will tailwinds be sufficient?
• Adaptation investment could see uplifts on a reactive basis
• Power: Nuclear, Natural Gas, Renewables & Uranium
• Oil & Natural Gas
• Energy, Water & Infrastructure Services
• Disclosure Appendix

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