America’s strategic edge in an evolving energy landscape

The U.S. race for leadership in artificial intelligence, quantum computing, and advanced manufacturing will be won—or lost—on the foundation of reliable, abundant energy. Data centers needed to power AI, electrification and industrial reshoring are expected to double electricity demand in some regions over the next five years.

Meeting this demand rapidly and affordably will require deployment of all available energy resources, from new hydrocarbon projects to boost U.S. production to nuclear, solar and wind, to form an abundant and resilient energy ecosystem.

As the Climate Intuition: Power Rewired: A New Map of Energy and Geopolitics report recently noted, governments not treating power as a strategic asset risk missing out on economic growth as AI transforms societies.

Strategic energy resources: A broader definition

For decades, reliable access to oil and gas defined energy security. Today, the definition is expanding as technologies and markets evolve. Energy security is increasingly a question of who controls minerals, grids, financing and technologies – prompting countries to look across a broad range of sources as they prioritize energy supply growth. Countries are also recognizing that a diversified energy mix can strengthen reliability, help to stabilize costs and enhance competitiveness.

JPMorganChase is working with clients to help expand reliable energy generation capacity and secure an affordable, diversified energy mix. It advised Constellation on its $16.4B acquisition of Calpine, merging Constellation's vast nuclear fleet with Calpine's extensive natural gas and geothermal assets and enabling them to diversify their power portfolio to meet growing customer demand.

Financing across this full range of energy solutions is not about promoting one technology over another. It’s about meeting client demand and enabling an energy supply that supports U.S. competitiveness and keeps prices affordable.

Building grid resilience

Modernizing the grid—physically, technologically, and in market design— while slowing rising costs is essential to grow the economy. A resilient grid is also an important part of U.S. national and economic security. Modernizing America’s transmission and distribution systems helps to prevent disruptions from storms, demand spikes and cyber threats. Distributed generation— from renewables, natural gas, or advanced nuclear—paired with advanced grid technology, strengthens the grid by decentralizing power and reducing the risk that any one failure can take down the system.

As outlined in Climate Intuition: Resilience: Where Climate Change and National Security Meet, Ukraine’s experience shows the value of decentralized and diversified infrastructure. Distributed renewable microgrids have been harder to target and faster to deploy during rebuilding than single-site large-scale energy plants.

JPMorganChase has supported clients working to build out grid modernization and storage capacity. It served as a joint bookrunner for VoltaGrid’s $5 billion comprehensive financing package, supporting their investment in behind-the-meter natural gas power solutions for data centers. This solution provides power for data centers without impacting the surrounding grid, thus enhancing grid resiliency.

Financing grid resilience goes beyond energy – it helps safeguard the U.S. economy.

Navigating uncertain supply chains

Supply chain resilience is increasingly important to bolstering America’s competitiveness in the global energy landscape. Also, by securing access to critical minerals, such as lithium, cobalt, and rare earth elements, and investing in domestic mining, processing, and manufacturing, the U.S. can reduce its dependence on geopolitically sensitive regions and insulate itself from export restrictions or supply disruptions.

As part of the Security and Resiliency Initiative – a $1.5 trillion, 10-year plan to facilitate, finance and invest in industries critical to national economic security and resiliency – It made a strategic equity investment in Perpetua Resources, helping to strengthen the domestic supply of critical minerals. Additionally, J.P. Morgan advised Korea Zinc and provided critical financing for its landmark transaction to build a large-scale metals smelter in the U.S., onshoring processing of 11 critical materials such as germanium and gallium.

Energy abundance as strategic advantage

By approaching diversified energy sources as strategic resources and safeguarding the supply chains behind them, the U.S. can strengthen its economy, manage energy costs, reduce vulnerabilities, and lead the industries of the future.

JPMorganChase is proud to support clients driving this transformation by helping finance the secure, abundant, affordable energy system that will power America’s next era of growth and competitiveness.