Trending for 2026: power, defense, nearshoring and LNG
AI infrastructure and power, dual-use defense, Mexico nearshoring and a possible LNG oversupply: where we see 2026 taking shape.
AI infrastructure and power: hyperscaler capex and chip-fab builds keep data centers and grid equipment tight; global electricity demand growth remains elevated into 2026, and fab pipelines (CHIPS-driven) are robust.
Defense and dual-use tech: NATO now meets the 2% GDP target across members, with higher outlays supporting C4ISR, cyber, and munitions.
Nearshoring: Mexico continues to attract record FDI as U.S. supply chains localize.
Energy: LNG may swing to oversupply by 2026, good for buyers and a margin risk for exporters.
How to play 2026
- Build an AI-power bottleneck basket (transformers, switchgear, grid software, advanced packaging, specialty chemicals).
- Pursue dual-use defense roll-ups with long-cycle aftermarket.
- Structure Mexico manufacturing JVs with FX-hedged supply contracts.
- Lock multi-year LNG offtake on buyer-friendly terms and evaluate gas-to-power arbitrage.
Informational content only. Not investment advice.