Energy companies are raising funds at the fastest pace this century, with IPOs pulling in $12.6bn in just the first half of 2023— the highest half‑year figure since the 1999 dotcom peak and far above the $4.3bn full‑year total of 2025. The surge comes as power for AI data centres becomes a bottleneck; a typical centre consumes about 876,000 megawatt‑hours per year, while U.S. demand is forecast to rise 39% between 2026 and 2035. Investors, after profiting from chip names like Nvidia, are now buying the “picks and shovels” that will supply the energy needed for AI.

Companies at the front of the wave include Forgent Power Solutions, which raised $1.7bn in February, and German gas‑engine maker Innio, which completed a $2.8bn flotation in June. Others—Fervo, X‑energy and Deep Fission—have also gone public, but nearly two‑thirds of these energy IPOs trade below their offer price, raising concerns about speculative valuation and quick flips.

The sector’s lower price‑to‑earnings ratio (18× versus IT’s 40×) and the promise of new technologies like next‑generation geothermal and small modular nuclear reactors are attracting both venture capital and public‑market investors. Banks must set reasonable valuations to avoid a repeat of the rapid sell‑off seen in recent IPOs.