Energy companies are raising money at IPO at their fastest pace this century, taking advantage of investors’ hunt for new ways to bet on the boom in power-intensive AI data centers.

Initial public offerings for energy firms raised $12.6 billion in the first half of this year, according to data firm Dealogic. That marks the highest half-year level since the peak of the dotcom bubble in late 1999 and the highest first-half figure on record. It is well above 2025’s full-year total of $4.3 billion.

The surge in fundraising comes as access to the vast amounts of energy needed to run data centers emerges as a bottleneck in a multi-trillion-dollar AI investment boom.

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SpaceX has pinned the bulk of its future value on orbital data centers. Not rockets. Not spacecraft.

Instead, it envisions launching and maintaining a constellation of 1 million satellites capable of generating 120 GW to power tens of millions—and potentially up to 100 million—frontier-class GPUs for data center services.

The company's founder, Elon Musk, revealed plans for this massive constellation months ago, but until recently, the scope of the individual satellites was largely unknown. That changed in June, when Musk and Ian Dahl, director of satellite engineering for SpaceX, spoke in a promotional video about the company's plans to develop the first iteration of an orbital data center, called an AI1 satellite. The video finally provided the company's numbers about the satellite's size and power capabilities.

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US manufacturers in many Rust Belt cities and towns are paying significantly higher electricity costs as growing energy demand from data centers strains the largest power grid operator in the United States. The resulting squeeze on profit margins for steelmakers and brick factories could further undermine President Donald Trump’s “Made in America” plan to revive US manufacturing, and it comes as Trump has simultaneously championed the tech companies behind the AI data center boom.

Factory electricity bills are generally rising faster than those for other business customers or residential customers, according to a Reuters analysis. It highlighted the example of the Belden Brick Company, a 141-year-old brick manufacturer in Ohio, whose electricity bills have soared from $1,600 to $12,000 per month due to a higher monthly capacity charge in the 13-state region served by the grid operator PJM Interconnection.

Meanwhile, the Steel Manufacturers Association warned that US steel companies concentrated in the Rust Belt region served by PJM Interconnection are paying tens of millions of dollars in higher power costs per year. Electricity accounts for 20 to 40 percent of the total production costs of making steel.

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DeepSeek, the Chinese startup developing large language models that are competitive with those from US companies like OpenAI and Anthropic, is planning to enter the silicon business, according to Reuters.

Citing three people familiar with the matter, Reuters writes that DeepSeek has been working on a move into silicon for about a year. It has been meeting with potential partners in the hardware and silicon space and has been hiring engineers for the project.

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