Transformational Innovation Opportunities (TRIO)

18 September 2026, 15:22 UTC Chief Investment Office GWM Investment Research

Weekly Power Brief #80: Recent discussions increase our confidence in AI power demand contracts Transformational Innovation Opportunities (TRIO): Power and resources Authors: Ulrike Hoffmann-Burchardi, Chief Investment Officer Americas and Global Head of Equities, UBS Financial Services Inc. (UBS FS); Nathaniel Gabriel, CFA, CIO Equity Strategist, Materials & Industrial, UBS Financial Services Inc. (UBS FS); Alexander Stiehler, CFA, CIO Head of Longer Term Investment Themes, UBS Switzerland AG; Rudolf Leemann, CIO Equity Sector Strategist - Energy & Natural Resources, UBS Switzerland AG; James Dobson, CFA, CIO Equity Strategist, US Energy & Utilities, UBS Financial Services Inc. (UBS FS); Kayden Lee, CIO Equity Strategist, UBS AG Singapore Branch; Nikolaos Fostieris, Global Equity Strategist, UBS Switzerland AG; Carsten Schlufter, CIO Equity Sector Strategist, UBS Switzerland AG

• Fall energy conferences are often a useful barometer of management sentiment, investor priorities, and emerging industry themes looking out over the next year. An early September energy conference left us with increasing optimism for more AI power contracts by year- end 2026.

• Behind-the-meter power solutions are increasingly viewed as a practical alternative, particularly where transmission development and interconnection timelines remain lengthy or regulatory delay risks have increased.

• Consensus across the conference was that growing Source: Getty images, UBS power demand requires additional investment across virtually every generation technology—a theme we have long embraced.

• Overall, most meetings were upbeat with management teams expecting improving business conditions in the energy and power business over the next 6-12 months. This supports our positive outlook for the Power and resources theme.

Our view in summary "Power and resources" selection list We attended a large energy conference in New York last week and came away with higher confidence in many of the themes supporting Power and resources. Our discussions with energy and power companies at the conference left us with increased confidence in AI power demand and associated power contracts growing through year- end. Further, we found a firm belief in “all-of-the-above” solutions among companies and investors, including all Source: UBS. *Potential trading restrictions. This is a copy of the Equity generation technologies. Behind the meter solutions are Preference List (EPL) “Power and resources.” As selections may change, we recommend visiting the UBS WM CIO portal (which also lists the analysts gaining an edge, as speed-to-power remains critical for data responsible for the selections and the thematic benchmark), or contacting center developers and regulatory and political constraints your client advisor for the latest update of this EPL.. Note: Weights shown are growing. above are the portfolio weights based on the Power and resources Equity preference list published as on 27 August 2026.

This report has been prepared by UBS Financial Services Inc. (UBS FS), UBS Switzerland AG, UBS AG Singapore Branch. Please see important disclaimers and disclosures at the end of the document.

Transformational Innovation Opportunities (TRIO): Power and resources

At the conference, we met with several companies and refers to temporary or permanent power generation at a generally came away with greater confidence in the theme. customer site that either precedes or eliminates the need Most of the power companies expressed confidence in for a utility-grid interconnection. While few participants the ability to announce additional power contracts with argued that BTM generation alone could satisfy long-term hyperscalers and data center developers by year-end. All of data center demand, many viewed it as an increasingly this supports our confidence in the near- to medium-term attractive tool to accelerate project timelines and alleviate outlook for our Power and resources theme. near-term grid and regulatory constraints. BTM’s ability to improve speed to power while meeting state regulatory Weekly performance update demands for new…