Every hyperscaler has announced ambitious renewable energy targets. But renewables alone cannot power the AI buildout. Here's why.

AI workloads run continuously. Solar generates power roughly 25% of the time. Wind achieves 35-45% capacity factors. Neither provides the baseload reliability that AI facilities require. Battery storage helps but remains expensive at scale.

The AI buildout is driving investment in both renewables and dispatchable generation. Clean energy is a goal. Reliable power is a requirement.]]>

The AI buildout depends on decisions made by regulated utilities — entities most tech investors have never studied. Utilities are the quiet kingmakers of this cycle.

Utilities operate under regulatory frameworks that prioritize reliability and rate stability. Adding 200 megawatts of load for a single customer requires new substations, transmission upgrades, and generation procurement — all approved by state regulators.

Utility strategy is becoming a differentiator in AI infrastructure deployment. Companies that understand how to work within regulated frameworks have structural advantages that pure capital cannot replicate.]]>

Data centers don't just need power — they need cheap power. And the geography of electricity pricing is reshaping where AI infrastructure gets built.

For a 100-megawatt facility running 24/7, each cent per kilowatt-hour represents roughly $8.7 million in annual operating cost. A 5-cent differential means $43 million per year — nearly a billion dollars over a 20-year horizon.

Power pricing is creating durable geographic advantages that no amount of tax credits can offset. Capital follows the electrons.]]>