1、M IdeaFuture of Energy|North AmericaPowering AI:Liftoff Has Commenced Focus on the Non-Linear Rate of AI ImprovementWe have begun to see large compute/data center deals,and expect the remainder of the year,and 2026,to mark a surge in demand for compute,escalating time to power deal velocity,and a po

2、tential step change in LLM intelligence.We reassess the power options and explore broader dynamics.M Morgan Stanley&Co.LLCStephen C ByrdEquity Strategist Stephen.B +1 212 761-3865 Jamil OhayiaEquity Strategist Jamil.O +1 212 761-4776 Michelle M.Weaver,CFAEquity Strategist Michelle.M.W +1 212 296-525

3、4 Anna FeldmanResearch Associate Anna.F +1 212 761-3784 In January 2024,we published our first comprehensive analysis of the power needed to enable the rapid growth in AI capabilities.See our collection of Powering AI research here.We have seen many recent signs of accelerating urgency to secure pow

4、er for data center growth over the past few months,and we believe 2026 will be even more active given the non-linear improvement in AI.While many of the key power de-bottlenecking stocks have performed well in 2025(for example,BE up 282%YTD),we see continued alpha potential for companies that offer

5、innovative,timely,reliable approaches to providing power to AI players.Key topics/catalysts/trends we are focused on:1.Catalysts we are watching for:(A)Bitcoin-to-DC conversion transactions,(B)Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research.As a result,

6、investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research.Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.For analyst certification and other important disclosures