# Energy security and infrastructure investment shape the next phase of the global power transition

- Link: https://www.directorstalkinterviews.com/energy-security-and-infrastructure-investment-shape-the-next-phase-of-the-global-power-transition/4121269708
- Published: 2026-11-13T12:59:00+00:00
- Author: Amilia Stone

Energy security, supply-chain resilience and rising electricity demand are changing
the priorities of governments and the investment sector, creating new considerations
for the development of the global power system.

Geopolitical tensions, disruption to energy supplies and the growing electricity
requirements of artificial intelligence (AI), data centres and electric vehicles
are increasing the focus on reliable domestic energy sources. The shift means that
the energy transition is no longer driven solely by decarbonisation, with security
of supply and affordability becoming equally relevant.

Roberta Caselli, Commodities Investment Strategist at Global X, believes energy 
markets are increasingly connecting geopolitical developments with inflation, industrial
policy and longer-term investment themes.

The immediate vulnerability remains concentrated in oil and gas. Conflicts in the
Middle East and potential disruption to important shipping routes can affect crude
oil, refined products and liquefied natural gas supplies. These disruptions can 
feed into inflation expectations, influence central bank policy and affect financial
market sentiment.

Even when supply concerns ease, the underlying exposure remains. Shipping routes,
regional instability and concentrated supply infrastructure continue to create potential
risks for energy markets.

Governments are responding by placing greater emphasis on energy sovereignty and
reducing dependence on vulnerable supply routes. This is also strengthening the 
argument for developing domestic and diversified energy sources, with supply security
becoming an additional consideration in long-term energy policy.

Nuclear power is one technology receiving renewed attention. Previous energy crises,
including the oil shocks of the 1970s, contributed to changes in national energy
strategies. More recently, geopolitical developments involving Russia and the Middle
East have brought energy independence back into policy discussions.

The growing electricity requirements of AI, data centres and other digital infrastructure
are adding to the case for nuclear generation. Nuclear power can provide consistent
electricity output, making it relevant to countries seeking reliable supplies while
reducing carbon emissions.

However, the investment opportunity extends beyond the construction and operation
of reactors. The nuclear fuel supply chain includes uranium mining, milling, conversion,
enrichment and fuel fabrication. Each stage is necessary to maintain the supply 
of fuel required by nuclear power stations.

Uranium supply is an area of particular interest. Historically, mined uranium production
has remained below reactor requirements, with the difference covered through inventories
and secondary sources. If demand from existing and new reactors increases without
corresponding investment in additional production, supply deficits could widen.

Beyond nuclear power, the rebuilding of electricity infrastructure represents another
significant part of the transition.

Increasing electricity generation alone will not be sufficient to meet future demand.
Power must also be transported efficiently and made available when required. This
creates a need for investment in transmission networks, battery storage and other
infrastructure capable of balancing electricity supply and demand.

Renewable energy, particularly solar, can provide additional generation capacity,
while nuclear power can contribute consistent baseload electricity. Battery storage
can help address the intermittent nature of renewable generation by moving electricity
produced during periods of higher output into periods of greater demand.

Grid infrastructure will also need to accommodate changing patterns of electricity
consumption. Electric vehicles, buildings, industrial facilities and data centres
are increasing the demands placed on existing networks.

The scale of potential storage investment is reflected in European and global targets.
The European Union has outlined an ambition to reach 200GW of energy storage capacity
by 2030, compared with 55GW in 2026. BloombergNEF estimates that global energy storage
capacity could increase 17-fold by 2035 to reach 3.8TW.

These requirements extend the investment case beyond individual energy generation
technologies. Battery manufacturers, storage infrastructure providers and companies
involved in electricity transmission and grid development could all form part of
the wider infrastructure investment theme.

The broader direction of the energy sector is increasingly shaped by three connected
developments. Geopolitical disruption continues to expose the vulnerability of oil,
gas and shipping networks, electricity demand is expected to increase as digital
infrastructure and electrification expand, and nuclear power and renewables are 
likely to play complementary roles in the longer-term transition.

_**CMC Markets plc** (LON:CMCX) is a UK-based financial services company that offers
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