Defiance Investments: Power, not chips, is the real AI bottleneck - and the opportunity

Defiance Investments chief strategy officer Brendan Cavanaugh joined Proactive's Stephen Gunnion to discuss the physical infrastructure behind AI's continued expansion and why investors may be missing the bigger opportunity. Cavanaugh argued that while most investors focus on AI software and models, the current buildout represents one of the largest physical infrastructure expansions in decades — driving demand for data centres, chip fabrication facilities, grid modernisation and power generation. Electricity, he said, is now the critical constraint. "It's not compute. It's not chips. It is really the sheer demand for power that's creating this entire bottleneck in the AI space." He highlighted the emerging "bring your own energy" model, where data-centre developers build dedicated power plants or mini-grids rather than relying on local utilities, creating potential roles for nuclear, clean energy, fuel cells, industrial batteries and small modular reactors. Cavanaugh outlined the Defiance AI & Power Infrastructure UCITS ETF (AIPO)'s picks-and-shovels investment approach focused on companies supplying infrastructure to the broader AI industry, which could benefit from data-centre construction and upgrades regardless of which technology company ultimately wins the AI race. Visit Proactive’s YouTube channel for more interviews and market insights. Please give the video a like, subscribe to the channel and enable notifications for future content. Read Proactive's Editorial Policy here: https://www.proactiveinvestors.co.uk/pages/editorialPolicy #AIInfrastructure #ArtificialIntelligence #DataCenters #AIEnergy #EnergyInfrastructure #PowerDemand #PowerGrid #GridModernization #NuclearEnergy #FuelCells #IndustrialBatteries #InvestmentThemes #DefianceInvestments #InvestorInsights #Proactive