Gabrielė Gegevičiūtė, Fund Manager at the investment management company Capitalica Asset Management
The 20th century was ruled by oil, the 21st is ruled by electricity. If power was once measured in barrels, today it is defined by volts and kilowatts. Each new breakthrough in artificial intelligence (AI) not only opens opportunities but also consumes ever more energy, while the battles for resources are shifting from the Persian Gulf to data centers and nuclear microreactor laboratories. The future balance of power will follow a very simple rule: whoever accumulates more electricity will gain a decisive advantage.
From Oil to Electricity
The geopolitical economy of the last century was shaped by oil. It was the key resource determining the influence of nations, the development of industry, and the balance of international power. Every crisis in the Persian Gulf or the Middle East immediately impacted the global economy. Oil was more than fuel – it became a strategic currency by which states measured their power.
Today, electricity has taken its place. From industry and defense technologies to data centers and AI – everything depends on the availability of electricity. If the 20th century question was “Who has oil?”, then the 21st century question is “Who has electricity?”.
Artificial Intelligence as an Energy Accelerator
Global energy demand is rising exponentially, with one of the biggest catalysts being the AI revolution. The AI race between the U.S., China, and Europe forces tech giants to invest unprecedented amounts of capital.
The Chinese startup DeepSeek invested USD 1.6 billion in its AI hardware. In the United Kingdom, a GBP 4 billion project is underway to create one of Europe’s largest data centers.
How is the U.S. responding? Its answer is simply staggering – Microsoft is committing USD 80 billion to AI infrastructure, Meta between USD 60–65 billion, and the crown jewel is OpenAI’s Stargate Megafactory, valued at USD 500 billion. The project’s goal is to secure U.S. leadership in AI, create hundreds of thousands of jobs, and provide a strategic capability to safeguard national security.
Data centers already consume about 3% of all EU electricity, and in the coming years this number will rise to 5%. The scale in the U.S. is even greater – by 2035 demand could double. Paradoxically, every advance in AI means higher energy consumption: new models are more powerful but also far more energy-intensive.
Energy Limits and Geopolitical Transformation
The growing dependence on electricity highlights a key problem – instability. Solar and wind power are expanding rapidly, but their production is intermittent, and storage infrastructure is still limited. Battery technologies cannot yet provide long-term reserves, while grids often fail to withstand sudden surges.
This is why there is increasing talk of a nuclear energy renaissance. France is planning new nuclear power plants, while the U.S. and Europe are actively exploring microreactor technologies.
One example is the French company Naarea, which together with Phoenix Manufacture is developing the XAMR molten salt microreactor project. The partnership covers all major phases – from design and prototyping to the first model and mass production. This shows that microreactor technologies are gradually moving from the research stage to industrial development, capable of ensuring independent electricity supply for AI infrastructure and industrial facilities. Such technologies could provide exactly what the AI age requires – stable, continuous, large-scale electricity production.
Nuclear energy, which just a decade ago seemed “undesirable” in Europe, is today becoming an inevitable investment direction.
A Green Breakthrough, But Not Without Compromises
Despite the return of nuclear energy, the green agenda in Europe remains strong. In 2024, the EU achieved a milestone for the first time: the majority of its electricity was produced from renewable sources – 47.3% green energy, 23% nuclear, and only 29.2% fossil fuels.
This shows that the energy transition is already underway, but it is not simple. On one hand, there is political pressure to move to clean sources, on the other – the technological need for a stable energy base. As a result, a dual strategy is emerging: the expansion of renewable energy combined with the strengthening of nuclear power.
Energy as a Geopolitical Currency
Electricity is becoming not only an economic but also a geopolitical tool. Data centers, factories, and digital infrastructure will move to where stable energy sources are available. States that secure energy independence will gain a competitive edge not only in markets but also on the international stage.
If oil dictated the industrial revolution of the 20th century, electricity will dictate the technological revolution of the 21st. That is why today energy can confidently be called the new currency of the 21st century.
For investors, businesses, and policymakers, the key question is no longer “What to produce?” or “Where to invest?”, but “With what energy resources will this be sustained?”. Whoever has electricity – holds power.
