BlackRock: Investors Will Back Energy Over Big Tech in 2026

In 2025, there was no surer bet for investors than AI. With the likes of Meta, Google, Microsoft and OpenAI expanding their AI operations at breakneck speeds, investors were clambering over one another to hop on the bandwagon. Financial institutions do not expect lightning to strike twice, however.

In BlackRock's recently published Investment Directions report, the US-based asset manager gauged the sentiments of its huge portfolio of investors.

For the report, BlackRock interviewed 732 of its EMEA clients, just one fifth of whom consider large US tech firms to be a compelling investment opportunity for 2026.

The survey results suggest that, while AI is still expected to grow, investors will look towards the energy providers that supply power to data centres.

Concerns over capital

More than half of the respondents to BlackRock's survey indicated that they consider data centre energy to be a worthwhile investment, while 37% prefer energy infrastructure over big tech as an opportunity.

This shift reflects a growing unease about the capital-intensive nature of AI development. Gartner put a figure to that capital in late 2025, estimating that around US$1.5tn was invested in AI across the year.

With so much money directed towards so few companies, firms are looking to spread their investments wider to lower their risk.

Higher borrowing costs have also sparked concerns about uncertain returns on the massive capital expenditure required for AI infrastructure.

"It's increasingly important to risk-manage megacap and AI exposure while also capturing differentiated upside opportunities," says Ibrahim Kanan, BlackRock's Head of Core US Equity.

The shift in sentiment comes as data centre operators face spiralling electricity costs and questions about the profitability of their investments.

How energy is reshaping investment strategy

The energy requirements of AI systems have been a hot topic in the year gone by. 

Data centres operate continuously and consume vast amounts of electricity to power servers and cooling systems.

This has elevated energy providers and grid operators from supporting players to central figures in the AI investment narrative.

BlackRock expects AI-driven demand to become a structural component of global power consumption rather than a temporary spike.

Renewable energy companies are particularly well-positioned as data centre operators seek to reduce carbon footprints whilst securing stable, long-term power supplies.

Companies are increasingly signing long-term clean energy contracts to manage both price volatility and emissions risk.

Why infrastructure is the focus for 2026

Beyond energy generation, the physical infrastructure supporting AI has become an investment priority.

Grid upgrades, transmission networks and energy storage systems are essential to prevent AI growth from stalling.

BlackRock, Microsoft and NVIDIA have announced plans for a US$100bn investment in AI data centres and power infrastructure.

The permitting process for new facilities and grid connections has emerged as a significant constraint in several regions.

Without faster expansion of transmission capacity, AI demand could strain electricity supplies and slow deployment.

The continued importance of big tech

Technology companies have not been abandoned entirely in BlackRock's investment strategy.

Firms such as NVIDIA and Microsoft continue to feature in the asset manager's funds, reflecting their role in developing AI software and platforms.

However, the survey results indicate that investors now prioritise sustainable returns and risk reduction over exposure to companies with heavy capital spending.

The construction phase of AI infrastructure also carries significant near-term emissions costs through steel, cement and energy-intensive manufacturing.

This timing gap between upfront investment and productivity gains has implications for both financial returns and climate strategy.

Is AI a bubble waiting to burst?

Despite the strategic recalibration, faith in AI's long-term potential remains very strong. In fact, just 7% of survey respondents believe that AI's recent rise is a market bubble.

This suggests that investor scepticism is focused on specific sectors rather than the underlying technology.

The findings published in BlackRock's Investment Directions report indicate that portfolio diversification is driving much of the reallocation towards energy and infrastructure.

Private markets are expected to play an increasingly important role in funding grid upgrades and efficiency improvements that sit outside public equities.

The shift reflects a maturing view of AI as an investment theme that extends far beyond software development to encompass the entire ecosystem required to power digital growth.