In this episode of Excess Returns, we’re joined by Rob Thummel of Tortoise Capital to discuss the critical intersection of energy and technology. Rob explains why “electricity is the new oil” as AI and data center demand reshape global power needs. We explore the future energy mix, investment opportunities across natural gas, nuclear, and renewables, and how investors can position for decades of transformation in the energy ecosystem. Topics covered: How AI is driving a new era of electricity demand The evolving U.S. energy mix: oil, gas, nuclear, and renewables Why electricity is becoming the new oil The scale of power needed to support AI and data centers Opportunities and challenges in renewables and battery storage The resurgence of nuclear and the role of natural gas How U.S. shale transformed inflation and global energy markets Energy infrastructure and why it offers steady returns How the TCAI ETF captures the “AI infrastructure” opportunity Risks and resilience of the U.S. power grid Lessons from 30 years investing in energy Timestamps: 00:00 Electricity is the new oil and the future of AI energy demand 02:00 The evolving U.S. energy mix and global demand growth 08:00 Why electricity, not oil, will power the next economic era 11:00 How much power AI and data centers will need 15:00 Can renewables meet rising energy demand? 20:00 The comeback of nuclear and its challenges 25:00 How U.S. shale changed global energy and inflation 32:00 Why energy infrastructure is less volatile than commodities 36:00 Inside Tortoise’s new AI infrastructure ETF (TCAI) 43:00 The rise of digital and electricity infrastructure plays 45:00 How Tortoise evaluates investments and valuations 49:00 The resilience and future expansion of the U.S. grid 52:00 Closing lessons: contrarian investing and energy’s importance
