Oil prices are surging as Middle East conflict disrupts supply, colliding with record spending on AI data centers and cloud infrastructure. Higher energy bills can erode margins and stretch payback periods on US$725b of AI investment. Equinix (EQIX), which generates about US$9.5b from designing, building and operating its IBX data centers and has a market cap of US$106.9b, faces exposure to this energy shock. Management highlights hedging and the ability to pass on some power costs, but recent price increases have already affected margins and customers once. Equinix’s rich valuation, heavy capital spending and rising power costs may mask pressure on future returns. Oracle Corporation Japan (TSE:4716), with a market cap of ¥1.1t, also sits in the crossfire of surging AI demand and rising energy costs. Its growth depends on power intensive data centers and continued heavy investment, with earnings expected to grow around 8% a year and a high forecast return on equity near 31%, though its P/E sits above the Japan software average.