Barclays Europe CEO, Ceccato, emphasized the urgent need for large-scale investment in AI infrastructure and energy, highlighting that no single entity—be it a company or government—can bear the full burden of these requirements. His comments come amid a significant announcement from US President Donald Trump regarding a joint venture, Stargate, which will invest up to $500 billion in AI over the next four years, with the initial deployment of $100 billion.
In an interview prior to the Trump announcement, Ceccato noted the increasing importance of energy to support AI developments, referencing the growing computing power required for AI applications. This demand is expected to surge through 2030, with the International Energy Agency (IEA) projecting that data centers, which fuel AI calculations, will need up to 1,000 terawatt hours (TWh) of energy.
The Barclays report also calls for a global effort to ramp up energy investments, underscoring that AI cannot progress without significant infrastructure in place. Ceccato suggested that while governments can play a role, capital markets must step in due to fiscal constraints, particularly in Europe where capital markets remain fragmented. He urged swift reforms to facilitate this investment.
Additionally, Ceccato addressed the challenge of transitioning to cleaner energy, describing it as a gradual process rather than a sudden shift. He reiterated Barclays’ commitment to supporting sustainable energy transitions, with the bank’s goal to contribute $1 trillion in sustainable and transition finance by 2030. The bank also aims to continue fostering clean tech innovation to aid in the global energy transition.
In conclusion, Ceccato stressed the need for collaborative efforts to ensure the necessary energy and infrastructure are in place to support the rapidly advancing AI industry.
The Barclays building 1 Churchill Place by Matt Buck on Wikimedia Commons CC BY SA 4.0
