UBS Reports Surge in AI Investments by Entrepreneur Clients, Driving Tech and Energy Demand

Entrepreneurial investors tracked by UBS have raised their AI-related investments by 42% over the past 12 months, with a concentrated focus on data center expansion and high-performance computing hardware. These projects span key global hubs, including Sydney, where new facilities are being deployed to support AI model training and deployment. The trend reflects growing confidence in AI’s long-term economic impact across sectors such as cloud services, defense technology, and energy infrastructure. The surge in data center development is directly increasing electricity consumption, with UBS estimating that each new facility consumes an average of 40 megawatts of power—equivalent to the needs of a small city. This translates to heightened demand for reliable, scalable energy sources, particularly in regions with stable grid infrastructure. As a result, energy companies with strong grid integration capabilities are seeing increased investor interest. Key market indicators reflect this shift: the S&P 500 Energy Select Sector ETF (XLE) rose 6.3% in the first quarter, while semiconductor stocks like NVIDIA (NVDA) and Apple (AAPL) posted gains exceeding 15% on stronger-than-expected AI chip demand. Meanwhile, the CBOE Volatility Index (^VIX) remained below 14, signaling reduced market anxiety despite elevated capital intensity. Crude oil futures (CL=F) rose 3.8% over the same period, partly driven by logistics and data center cooling system energy demands. The trend is reshaping investor portfolios, with private equity and venture capital funds redirecting over $18 billion toward AI infrastructure in 2026, according to internal UBS data. Defense contractors with AI integration capabilities, including those developing autonomous systems and advanced surveillance, are also benefiting from this capital reallocation.