The artificial intelligence (AI) boom is here. In just the past couple of years, we’ve seen the explosive rise of generative AI tools like ChatGPT and Grok, and companies are investing billions to keep up.

But powering these technologies will require energy and natural resources on a scale we haven’t seen since the dawn of the internet.

We believe this presents a once-in-a-generation investment opportunity. Much like the gold rush of the 1800s, when fortunes were made not just by miners but also those selling the picks and shovels, the AI revolution is creating a parallel demand for the raw materials that make it all possible.

AI Training Now Consumes More Power Than Steel Production

It may surprise you to learn that training large AI models requires more electricity than manufacturing steel.

According to a recent report by the International Energy Agency (IEA), data centers—many built specifically to handle AI—are on track to account for nearly half of all U.S. electricity demand growth through 2030. The U.S., in fact, could soon consume more electricity for data processing than for producing all aluminum, cement and steel combined.

To keep up, companies are racing to build massive server farms. Goldman Sachs estimates that global data center power demand will jump 50% or more by 2027, with AI-focused facilities consuming three to four times more capital per square foot than traditional cloud data centers.

The biggest bottleneck? Power, and the raw materials behind it.

Copper and Natural Gas Usage Set to Climb with AI Growth

AI resides in the cloud, but it’s grounded in commodities extracted from the earth. The technology takes copper wiring, natural gas turbines, rare earth magnets, concrete and more to keep the servers humming.

According to metals trader Trafigura, AI-related copper demand could add up to 1 million metric tons by 2030. Meanwhile, S&P Global expects AI data centers to increase U.S. gas demand by as much as 6 billion cubic feet per day by 2030. That’s the equivalent of adding another California to the grid.

Every new data center needs a sturdy shell, which in turn drives demand for industrial metals and basic materials. Think HVAC systems, server racks and cooling systems.

This is just the infrastructure. We haven’t even touched on the resources needed for the chips and semiconductors themselves, which require gold, silicon and rare elements mined from all corners of the globe.

The Trillion-Dollar Arms Race

Governments are spending aggressively to shore up critical tech production and secure energy independence. The U.S., China, and Europe are all investing in AI capacity, semiconductor factories and electrical grid modernization.

According to Deloitte, over $1 trillion in U.S. investment is expected in AI-related infrastructure by 2029, with power demand projected to surge a jaw-dropping thirtyfold by 2035. Yes, you read that right—thirtyfold. And for every dollar spent on high-end chips or cloud computing, another is spent on energy, minerals and metals.

PSPFX: A Picks-and-Shovels Strategy for the AI Boom

Seeking a way to get exposure? We like to think of our natural resources fund, the Global Resources Fund (PSPFX), as a picks-and-shovels play on AI and data centers. The fund invests in companies that provide the essential building blocks for the digital economy.

PSPFX is a diversified fund that focuses on energy, metals, materials and other resource-related industries. Its holdings include exploration companies in copper, gold and other metals; mining operations in Canada, the U.S. and Australia; and hard asset firms that may benefit from infrastructure spending.

As of March 2025, PSPFX had over 75% of its assets in basic materials and energy stocks, with its largest country exposure in Canada and the U.S., two of the most resource-rich nations in the world.

With PSPFX, you don’t need to guess which AI stock will win. You can invest in what they all need: resources powering their growth.

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