Strategic Alternatives

Global power demand is rising sharply, and geopolitical instability is accelerating the need for secure, affordable, and diversified energy systems. In this episode, host Joe Colletti speaks with Robert Kwan, Head of Global Power, Utilities & Infrastructure Research, and Maurice Choy, Canadian Energy Infrastructure Analyst, to explore how RBC Imagine themes—energy security, affordability, crisis capitalism, synthetic technologies, and shifting superpowers—are reshaping the sector.
The conversation highlights how utilities, midstream operators, and infrastructure investors are navigating a world where energy transition, digital demand, and geopolitical conflict collide. As Robert notes, “this current environment is hammering home to a broad population how important energy is to everybody’s daily lives”.
Key Points
Geopolitical conflict is reinforcing a global “all of the above” approach to energy supply.
Rising energy prices are intensifying affordability pressures across households and industries.
Hyperscalers and digital platforms are rapidly becoming dominant global electricity consumers.
Utilities are investing heavily in resilience to manage climate, cyber, and grid instability risks.
Synthetic technologies are improving efficiency and reducing supply‑chain vulnerabilities.
Canada is increasingly well‑positioned to expand global energy exports across fuels and electricity.
Massive infrastructure investment is required to deliver diversified, secure global energy systems.

Software valuations remain squeezed amid dire predictions of ‘SaaSpocalypse’. But the real future of the sector is likely to be more complex, as RBC’s recent Canadian Private Tech Conference underlined. In this episode, Software Analysts Paul Treiber (Canada) and Rishi Jaluria (U.S.) reflect on the competing visions presented at the event, and consider how AI’s impact on the sector – and other industries – is playing out.

Key Points
• Innovation will be the key differentiator for software companies’ survival as AI disruption continues.
• AI is targeting companies’ labor budgets rather than IT spend.
• Software M&A remains subdued, pending a recovery in valuations.
• Power constraints are limiting the scaling of AI.

Introductions [00:06]

Paul Treiber introduces colleague Rishi Jaluria for a discussion about the RBC Canadian Private Tech Conference, which featured 25 differentiated tech companies.
Software’s future [00:40]

The conference presented competing views of AI’s impact on software. Some foresee the ‘SaaSpocalypse’, with software headcount shrinking as AI self-compounds. Others are harnessing AI to move faster and say their customers are expanding software use. Vertical software firms in regulated, workflow-dense environments are better insulated from disruption.

Labor impact [03:09]

Rather than eating into IT budgets, AI is cannibalizing labor. Beyond software, entire industries are being disrupted. Some believe financial intermediation may disappear.
Constraints on AI [04:43]

AI processing is accelerating, but memory is growing more slowly and interconnect failing to keep pace, acting as a constraint.
M&A [05:15]

M&A activity is subdued and will only revive with a recovery in valuations.
Sovereign clouds [05:52]

Sovereign clouds are seen by some as a tailwind for Canadian companies. Others believe local hosting will prove unnecessary.

With a 75-year track record under its belt, TC Energy is poised to enter a new phase of growth, thanks to a presence across North America and the growing demand for energy at home and abroad. In conversation at RBC’s Global Energy, Power and Infrastructure Conference, President and CEO François Poirier outlines the company’s current tailwinds, and why he sees particular LNG growth opportunities for Canada.

Key Points
• Canada has new opportunities to meet growing global demand for LNG.
• TC Energy is lifting self-imposed capital allocation limits as it seeks to grow its assets across North America.
• Safety, profitability and asset reliability are closely entwined in the success of the business.

RBC's Canadian Industrials Conference in Toronto wrapped with more reasons for optimism than many expected. In this conference takeaway, Walter Spracklin, Director of Canadian Research and Co-Head of Global Industrials Research, debriefs with analysts Sabahat Khan, James McGarragle, and Matthew McKellar on the key themes that emerged. Steel producers are finding ways to mitigate U.S. tariffs, the freight recession is easing, and the most significant buzz centred on the government's nation-building infrastructure and defence plans.

Key Points
• Canada’s nation-building plans are boosting industrial confidence, while its defense strategy creates a tailwind for the country’s aerospace sector.
• Tighter supply has helped to ease the long-running freight recession.
• Steel suppliers are diversifying from U.S. exposure to mitigate trade tariffs.
• Tariffs have also hit lumber hard, with supply tightening in response.
• AI deployment is positioning the transport sector for operational efficiencies.

Introductions [00:06]

Host Walter Spracklin refers to RBC’s recent Canadian industrials conference in Toronto, which heard from 38 participating companies. He introduces three colleagues – Sabahat Khan, James McGarragle, and Matthew McKellar – to discuss the key themes that emerged.
Freight recession eases [00:47]

The freight recession dominated last year’s conference, but tighter supply driven by regulatory changes has lifted pricing, with positive impacts on rail too.
Tariff impacts on industrials [02:05]

Section 232 tariffs are creating direct impacts across steel-exposed industrials, while broader tariff uncertainty is delaying some large capital project decisions.
Government plans inject confidence [04:30]

The Canadian government’s new strategies on nation-building infrastructure are lifting confidence in the market. Its plans to increase defense spending and prioritize Canadian producers are seen as a potentially lasting tailwind for aerospace companies.
Paper and forest production [9:36]

Demand is poor and the lumber sector has been hit hard by tariffs. However, tighter supply has set up the industry for better conditions at lower levels of demand in future.
AI and capital allocation [13:01]

Other common themes at the conference were the deployment of AI to achieve efficiencies, especially in transport; and the disciplined allocation of capital, balancing organic growth with strategic M&A.

The expansion of power and infrastructure to support the energy transition is unfolding against a complex backdrop. Policy uncertainty, geopolitical tension, and shifting market forces are colliding with record investment and a rapidly evolving mix of technologies. Ralph Ibendahl, Global Head of Energy Transition and Co-head of Power Utilities for Europe, assesses the challenges and opportunities with expert colleagues from the U.S., Canada, and Australia.

Key Points
• Increasing global power demand is leading to growth across all power types and grids.
• Policymakers need to balance affordability concerns with growth opportunities.
• Recent deals include financing for a major nuclear project in Canada, and build-out of Germany’s grid.
• Companies are drawing on a full mix of funding types, including infrastructure equity, private credit, and structured capital.
• Many companies are turning to the public markets, where valuations are stronger.
• RBC Capital Markets is guiding clients through this volatile market.