Name: How to Make Money From the Booming Demand for Energy | Odd Lots
Uploaded: 2026-01-15T09:16:13+00:00
Duration: 3208 s

Speakers

Tyler Rosenlicht — Cohen & Steers

Joe Weisenthal — Co-Host, Odd Lots (Bloomberg)

Summary

Odd Lots hosts Joe Weisenthal and Tracy Alloway interview Tyler Rosenlicht of Cohen & Steers about how to invest in the growing demand for energy and electricity. Rosenlicht argues the world has moved from resource abundance to scarcity, with data centers, industrial demand and electrification driving a structural need for more power infrastructure. He highlights selective utilities, natural gas pipelines, nuclear and uranium, copper and picks-and-shovels industrial suppliers, while flagging regulatory risk and capital discipline as key constraints.

Tyler Rosenlicht of Cohen & Steers discusses global listed infrastructure and natural resource equities.
Global energy demand is rising faster than expected as energy intensity improves less than assumed.
Data centers are a major but not sole driver of US electricity demand growth.
Utilities are dispersing: best-in-class growth may be attractive while weaker utilities face affordability and regulatory risk.
Natural gas pipelines, nuclear energy, uranium and copper are cited as scarcity and buildout beneficiaries.
Picks-and-shovels engineering, construction and aluminum smelting may offer better risk-adjusted exposure.
Venezuela oil reconstruction is seen as too risky until legal and regime issues clear.
Government intervention is viewed as increasingly necessary to catalyze resource supply.

Ideas

Tyler Rosenlicht Cohen & Steers 6:14

Energy infrastructure demand is structural, not fad

Infrastructure investing is no longer only stable toll roads and airports; the energy, power and data-center buildout is creating a structural, secular opportunity set across communications, utilities, transport and energy infrastructure. Rosenlicht says these trends have been coming for a decade and are not a fad from an infrastructure investment perspective.

Tyler Rosenlicht Cohen & Steers 16:29

Era of scarcity favors resources stocks

The world has exited an era of resource abundance and entered an era of scarcity. Years of capital starvation and consolidation have concentrated expertise and left too few suppliers for the economy's needs, so disciplined natural-resource companies that facilitate supply can earn above-average returns with more predictable growth. He explicitly says investors need to look at natural-resource stocks.

Tyler Rosenlicht Cohen & Steers 23:10

Natural gas benefits from reliability demand

The energy system now prioritizes more and stable power before clean power. Natural gas fits that need as a reliable 24/7 fuel with a better emissions profile than coal, and Rosenlicht expects continued coal-to-gas switching and natural-gas demand from data centers.

Tyler Rosenlicht Cohen & Steers 28:19

Nuclear renaissance serves data center power needs

Nuclear is the one resource that can serve both reliability and clean-energy goals: it runs 24/7, has low variable cost, a high capacity factor and a clean profile, which matters for data centers that cannot tolerate intermittency. Rosenlicht describes a phased nuclear renaissance from stopping shutdowns to restarts to inside-the-fence brownfield buildout, with government support and cost-overrun backstops likely necessary.

Tyler Rosenlicht Cohen & Steers 32:08

Copper supply discipline supports high prices

Copper prices are at all-time highs, but major miners are cutting capex and shareholders are demanding discipline after past value destruction. Because the natural supply response is not coming, Rosenlicht argues government intervention may be needed to unlock supply, keeping the copper market tight.

Tyler Rosenlicht Cohen & Steers 39:35

Natural gas pipelines benefit from data centers

Pipeline construction is becoming more pragmatic after the 'bananas' era. The current activity is not oil pipelines but natural gas pipelines feeding data centers, where customers have high willingness to pay because gas prices and oil differentials support new projects.

Tyler Rosenlicht Cohen & Steers 41:15

Best-in-class utilities offer better growth

Within utilities, the best-in-class names are attractive because the sector trades at lower multiples than a few years ago while growth is higher. Fast-growing utilities now trade only a small premium to average utilities even though their growth differential is much better, and Rosenlicht expects execution to be rewarded as the pack separates; average utilities face affordability and regulatory challenges.

Tyler Rosenlicht Cohen & Steers 42:45

Picks-and-shovels buildout offers better risk-adjusted returns

Picks-and-shovels companies tied to the data-center and re-industrialization buildout offer better risk-adjusted returns than direct plays. He points to engineering and construction firms and aluminum smelters, saying their multiples are higher but their growth is more predictable and structural and their industries are highly consolidated.

How to Make Money From the Booming Demand for Energy | Odd Lots

Summary

Ideas

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