Agentic AI Adoption, M&A Activity & Energy Storage Trends
This week's briefing examines the accelerating adoption of Agentic AI systems in the enterprise, a surge in AI-driven M&A activity, and critical infrastructure developments in BESS and data centers supporting the AI revolution.
Executive Summary
Agentic AI Adoption: 25% of mid-to-large companies now have agentic AI in production (vs. 8% in broader market)
Global AI M&A: Activity increased 36% in 2025, with 111 megadeals over $5B
Energy Storage Trends: BESS capacity surpassed 250 GW globally, overtaking pumped hydro for the first time
Big Tech Spending: Projected to spend $635-665B in FY2026, with 75% on AI infrastructure
Record-breaking Deals: SpaceX-xAI merger ($1.25T) and Apple's acquisition of Q.ai (~$2B)
Agentic AI: The Enterprise Divide
The enterprise adoption of agentic AI is rapidly moving from experimental to operational, creating a significant competitive advantage for early adopters.
Key Statistics:
25%
Enterprise Production
of mid-size to large companies have agentic AI in production
8%
Broader Market
reported by Gartner's broader customer base
80-90%
Benefit Capture
Companies capture of benefits when applying learnings to subsequent initiatives
Case Study:
Blue Cross Blue Shield of Michigan has 115 agentic systems in production, demonstrating tangible impact at enterprise scale.
Critical Success Factor:
"There's no AI strategy without a data strategy" - Jennifer Belissent, Principal Data Strategist at Snowflake
M&A Activity: Record-Breaking Deals
The AI industry experienced a surge in M&A activity, with global deal values increasing by 36% in 2025. The number of megadeals (over $5 billion) jumped to 111 in 2025, up from 63 in 2024.
Major Transactions:
Tax & Regulatory Landscape
The rapid growth of the AI industry is attracting increased regulatory attention worldwide.
Key Developments:
US Tariff Policy
25% tariff imposed on advanced AI chips imported into the US, with case-by-case exports to China allowed (with significant tariffs and volume caps)
Financial Services Regulation
Regulators focused on AI governance, requiring financial institutions to align with regulatory and trust expectations
Governance Priorities
Accountability
Transparency
Explainability
Bottom line:
The ability to govern, explain, and defend AI models under existing regulatory frameworks is becoming a key determinant of success in banking and financial services.
BESS: Historic Milestone
Battery Energy Storage Systems Overtake Pumped Hydro
The BESS market reached a historic milestone in 2025, with global operational capacity surpassing 250 GW, overtaking pumped hydropower energy storage (PHES) for the first time.
Market Growth:
250GW+
Global Operational Capacity
in 2025
100GW
Annual Additions
100 GW/280 GWh in 2025 (nearly tripling 2023 volumes)
130GW
Projected Additions
130 GW/350 GWh in 2026
53%
US Battery Installations
Leap in 2025
Market Projections:
Global BESS market: $521.24 billion by 2035
US market alone: $83.66 billion by 2035
Key Driver:
Increasing need for grid stability with intermittent renewable energy sources, fueled by surging solar installations and federal investment tax credits.
Data Center Infrastructure Boom
Multi-Trillion Dollar AI CapEx Supercycle
The AI revolution is fueling unprecedented capital expenditure in data center infrastructure, with Big Tech companies leading the charge.
FY2026 Spending Projections:
635-665B
Total Big Tech Spending
Billion
~450B
AI Infrastructure
(75% of total)
GPUs
Servers
Networking equipment
Data centers
Market Growth:
Data center GPU market projected to grow from $138.88 billion in 2026 to $624.17 billion by 2034
Key Trend:
Hyperscale operators struggling to keep pace with capacity demands, leading to:
Earlier-stage development involvement
Build-to-suit projects
Direct development initiatives
Major Players:
Alphabet, Microsoft, Amazon, Meta
References
Data & AI Trends 2026: The Agentic Playbook for Enterprise
Global M&A industry trends: 2026 outlook
2026 AI Policy and Semiconductor Outlook: How Federal Preemption, State AI Laws, and Chip Export Controls Will Shape U.S. Policy
Trump Reverses US AI Chip Export Policy to China
Keeping AI on the Right Side of the Ledger for the Finance Sector
AI Regulation in Banking Is Reshaping Model Risk Governance
Global BESS capacity tops 250 GW, overtaking pumped hydro for first time
Battery storage outlook boosted by thirst for firm power
Energy Storage Market Size to Worth $521.24 Billion by 2035
Big Tech set to spend $650 billion in 2026 as AI investments soar
Data Center GPU Market Size, Share | Industry Report [2034]