BlackRock Plans $38 Billion AES Acquisition Amid AI Power Boom

The recent surge in investments and IPOs in the power and AI infrastructure sector highlights strong market confidence, exemplified by Fermi's 55% share price jump and the $1 billion investment in ArcLight Capital's AlphaGen portfolio by the Canada Pension Plan Investment Board. Fermi, co-founded by former Trump administration DOE head Rick Perry, plans to build a large energy and data center campus in Texas, combining new gas generation with nuclear power, and seeks federal support to accelerate AI-related infrastructure projects. Meanwhile, BlackRock's Global Infrastructure Partners is reportedly in advanced talks to acquire AES, a major renewable energy provider with significant AI data center clients like Google, Amazon, and Microsoft, in a potential $38 billion deal. This reflects a broader trend of tech giants deeply engaging in infrastructure financing, supported by strong investor appetite and abundant capital in private and public markets. However, some experts warn of a speculative bubble in AI investments, cautioning about excessive market enthusiasm. Additionally, AI and machine learning are revolutionizing commodity trading by enabling faster, more precise market predictions, signaling increasing reliance on advanced technologies across financial sectors.