CNBC’s Jim Cramer said that even as investment in renewable energy continues to rise, resources such as fossil fuels will remain important and enable innovation. Kramer highlighted Big Tech’s “insatiable demand for energy” and said AI-leading companies like Meta, Nvidia, Google and Microsoft are building more and more data centers. “While you may be reluctant to invest and wonder who cares, you need to know how important this fossil fuel technology is to the growth of the Magnificent Seven.” said.
CNBC’s Jim Cramer told investors Thursday that even as investment in renewable energy continues to rise, resources such as fossil fuels remain important and enable innovation.
“If we need more energy, we’re going to get it from what comes out of the ground, fossil fuels, especially natural gas, that power our data centers,” he said. “While you may be reluctant to invest and wonder who cares, you need to know how important this fossil fuel technology is to the growth of the Magnificent Seven.”
Kramer highlighted Big Tech’s “insatiable demand for energy,” noting that AI-leading companies like Meta, Nvidia, Google and Microsoft are increasingly building power-hungry data centers. And the power grid can’t handle the power needed for these data centers, he added.
While tech giants are investing heavily in nuclear energy, Kramer suggested that electricity won’t play a major role in data centers for at least a decade. He said nuclear power plants are difficult to build and nearby towns are reluctant to allow them to be built. He also looked back at GE Bellnova’s recent quarter and said the company’s strength comes from electrification and natural gas, not wind or nuclear power.
Kramer pushed back against the idea that internal combustion engines will become obsolete. That idea was perpetuated by Tesla CEO Elon Musk during the electric car maker’s earnings call Wednesday night. But Kramer also emphasized that the debate over fossil fuels extends beyond the auto industry.
“This is not just a grudge match between old and new, electric cars versus internal combustion engines,” he said. “The truth is, whether we like it or not, fossil fuels are essential for more than just cars.”
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