Welcome to Goldman Sachs Exchanges.

I'm Allison Nathan and I'm here with George Lee, co-head of the Goldman Sachs Global Institute.

Together we're co-hosting a series of episodes exploring the rise of AI and everything it could mean for companies, investors, and economies.

George, great to see you again. Good to be back. We had a little bit of a heatus here while I was recovering from knee surgery, but fortunately not much happened in the world of AI over the past few months. I'm kidding, of course. It has been a cavalcade of extraordinary events, and be really fun to talk to our guest about what's shaping the movement right now. Yes, well, great to have you back, George. And today we are going to take a closer look at an area that we've touched on before in our conversations, you and I, but really deserve a closer look. And that is the resources that the AI buildout could require. We are joined here by Brian Singer, head of GSA and Goldman Sachs Research. Thank you for having me, Alison. Thank you, George.

Glad to have you here, Brian. Great to be with you all.

And Brian, just to kick off the conversation, we've been talking about the tremendous amount of power that data centers will require for a while now.

But the amount of spending on these data centers have just continued

to grow and grow and grow. I think that was a key feature of the last few months when we think

about the AI space. So first, put some numbers on those developments and what it can mean for

power demand. Sure. I mean, we have seen the hyperscalers capital budgets and R&D budgets in

2026 and 27 combined increased by more than $300 billion.

And I'm sure we can get into the debate whether there's going to be a second derivative inflection coming for slower growth going forward.

But you're growing off of a upwardly revised budget of $300 billion plus.

And that is going to trickle down into power

and a whole host of other uses.

And so we've been focused on where will that money go and what are the investment opportunities

for the enablers?

And some of your work, Brian, I noticed notwithstanding all of that spend, and there's obviously

a lag effect, but you calculate that we

remain in a deeply supplied demand imbalanced state, right? Maybe you could talk a little bit out

where we stand there. Yeah, that's right. I mean, Alison, you and I go back to the Shale

revolution and arguably before as well, unfortunately or fortunately. And that was a very similar

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