New Sites of Accumulation? Why Intangible Assets Matter for Energy Transitions

Abstract

ABSTRACT Energy transitions break geographic monopolies on fossil fuel resources and are expected to redistribute economic benefits to new actors, from local communities to developing countries. At the same time, basing energy systems around renewables increases the importance of intangible assets such as data and artificial intelligence (AI). As different IPE approaches have shown, such intangibles can be monopolized by lead firms and especially Big Tech, which increasingly provide crucial digital infrastructures. This paper therefore asks what role Big Tech firms may play in energy systems, and whether their access to intangibles enables them to expand to the energy sector. The case study of Amazon illustrates that data-driven intellectual monopolies are well-positioned to expand into energy, benefitting from their position as providers of data infrastructures, and capacities in data harvesting and analysis. Amazon is both developing and marketing its own innovations, and investing in energy systems businesses. As intangibles gain importance in energy systems, possible implications for the IPE of energy include power and economic value flowing towards Big Tech, rather than countries or communities.