I don't view offshore wind as a primary player, Morgan Stanley's Byrd

Watch on YouTube ↗  |  January 02, 2026 at 20:10  |  3:30  |  CNBC
Speakers
Stephen Byrd — Global Head of Thematic and Sustainability Research, Morgan Stanley
Brian Sullivan — Anchor, CNBC (Last Call / Power Lunch)

Summary

CNBC Power Lunch host Brian Sullivan discusses the outlook for wind power with Morgan Stanley's Stephen Byrd. Byrd argues offshore wind will not be a primary energy source for AI, data center, and industrial demand, citing high costs and poor locations. He prefers natural gas, solar with energy storage, and nuclear. The conversation also highlights regional power-cost differences, especially Texas versus the Northeast.

  • Stephen Byrd says wind is a rounding error relative to projected power needs, especially for data centers.
  • He argues offshore wind's cost and Northeast location make it less compelling for data-center demand.
  • He favors natural gas as a primary solution, with solar, storage, and nuclear also contributing.
  • He notes power affordability and utility bills are a political and consumer focus.
  • He says Texas has lower power costs than Massachusetts, helping explain more data-center activity there.
  • The host raises the bull case that offshore wind can indirectly free up power for data centers, which Byrd rejects.
Ideas
Stephen Byrd Global Head of Thematic and Sustainability Research, Morgan Stanley 0:58
Offshore wind is not a primary player
Byrd argues that wind is a rounding error relative to the power needed for AI, data centers, industrial growth, and EVs. Offshore wind is poorly located for data centers, has high costs in the U.S., and the Northeast has higher power costs and limited available power, so he does not view it as a primary player and does not find the argument that it indirectly powers data centers compelling.
Offshore wind HIGH
Stephen Byrd Global Head of Thematic and Sustainability Research, Morgan Stanley 1:05
Natural gas is preferred for power demand
Byrd says that when looking at the power needed for AI, data centers, industrial growth, and EVs, he looks more to natural gas than wind. He also says that efforts to lower customer utility bills tend to involve natural gas, making it a key solution for affordability and growing power demand.
UNG HIGH
Stephen Byrd Global Head of Thematic and Sustainability Research, Morgan Stanley 1:09
Solar is very low cost
Byrd expects solar to be part of the power mix, paired with some energy storage, and notes that solar is very low cost, supporting its use as power demand grows.
SOLAR MED
Stephen Byrd Global Head of Thematic and Sustainability Research, Morgan Stanley 1:11
Nuclear will see quite a bit
Byrd expects to see quite a bit of nuclear power as part of the energy mix needed to meet growing power demand.
NUCLEAR LOW
Stephen Byrd Global Head of Thematic and Sustainability Research, Morgan Stanley 3:24
Energy storage costs are dropping
Byrd says energy storage costs are dropping and expects some storage paired with solar as part of the solution to lower power bills and meet demand.
ICLN LOW
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This CNBC video, published January 02, 2026, features Stephen Byrd discussing Offshore wind, UNG, SOLAR, NUCLEAR, ICLN. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Stephen Byrd  · Tickers: Offshore wind, UNG, SOLAR, NUCLEAR, ICLN