28 29 Building Infrastructure at Scale and Pace Unattributed quote China added 356GW of renewables in 2024 (277GW solar, 79GW wind) as total installed capacity surpassed that of thermal for the first time and accounted for 33.6% of generation as coal fell below 60% for the first time. New Chinese data centers must source at least 80% of their electricity from renewable energy by 2030 and verify this through the purchase and retirement of Green Energy Certificates (GECs), helping to maintain the pace of solar and wind deployment as current incentives are phased out. Rising power demand is creating grid bottlenecks, while permitting constraints are delaying the build-out of new transmission lines. Utilization of existing capacity is being enabled through better planning and operation of the grid, while battery storage is being used to increase utilization of existing generation, helping to shift peak demand from constrained parts of the grid. Tools like Alphabet’s Tapestry aim to modernize the electric grid using AI, making it more visible, reliable, affordable, and sustainable by building a “Google Maps for electrons”, mapping grid connections to optimize energy flows and planning, accelerating clean energy integration. Tools like Grid Planning and GridAware automate inspections, simulate scenarios, and support renewable site selection, resulting in 86% faster simulations and 30x more scenario runs, helping unlock stalled energy projects and reduce outages. Renewables follow the money Grid Constraints, behind the meter solutions and batteries While US tariffs and cuts in incentives have slowed down the pace of renewables additions, US solar output in June jumped 30.5% year-on-year and Chinese exports of solar modules rose 13% year-on-year to 236GW, shifting exports away from the US, with Europe importing almost 95GW and Brazil 22.5GW, while India and Pakistan each importing over 16GW. Geothermal is also gaining momentum thanks to the capital and demand for carbon-free energy for data centers. Google and Meta have both partnered with Fervo Energy to deploy enhanced geothermal systems (EGS) for 24/7 carbon-free power, but at 115 MW, geothermal deals show promise but remain small compared to hyperscale demand. According to Woodmac, about 1.5GW of Geothermal projects are in the current development pipeline of which 25% is targeted for data centers. 29 Unattributed quote There is rising opposition in the US and EU over power price hikes, water usage, and land rights for transmission lines, with social license risk becoming a material factor in project timelines and cost structures. Local elections in Europe have highlighted concerns over data center energy impacts. US households that heat with electricity will spend about 4% more this winter as power prices rise, even if weather is ~10% warmer. Electricity consumption is expected to average 1% lower than last winter as prices rise by 5% nationwide. Homes, primarily using electricity, will grow ~2% to over 57 million, while heating-oil homes will fall ~4%, according to the EIA. Weakening social licence Battery storage this year is set to increase by 104GW, up 44% from last year. Retired coal plants are being repurposed into large-scale battery storage sites, leveraging existing grid connections and infrastructure. Examples include Hawaii’s Kapolei Energy Storage system, which replaced the state’s last coal plant with a 185 MW battery, and DTE Energy’s Trenton Channel project in Michigan, converting a former coal site into a 220 MW battery center. These projects provide grid stability, store excess renewable power, and accelerate the clean energy transition. Many data center operators are securing private-wire agreements and on-site generation, including nuclear PPAs and gas-fired plants, ensuring uninterrupted power for hyperscale facilities. Modular, behind-the-meter power generation solutions are gaining traction among data center developers looking to bypass regulatory and interconnection hurdles, posing a growing challenge to independent power producers’ contracting model. Farmers opposed the $4.9bn Grain Belt Express power line, planned to carry wind power from Kansas to eastern states, citing land rights and compensation concerns, causing delays and lawsuits, while Google cancelled its Indiana campus after community pushback over water use and power demand. However, behind-the-meter or islanded supply arrangements do not optimize capacity or capital effectively. They do provide reliable 24/7 supply for data centers, usually with 100% spare capacity, but do not optimize the full extent of the grid, intended to be the “largest machine in the world” balancing supply across 100’s of producers with demand from millions of customers every second of the day. While data center loads can shift dramatically between training runs, building battery and planning systems to manage short- term fluctuations in supply or demand could enable data center operators to increase the utilization of their generating assets, providing lower cost electricity to local communities. 15GW of nuclear power plants to be built in the US - there’s been a flood of capital flowing back into the nuclear business The scale is real — we’re talking about over $10 trillion in power and data infrastructure. But the money exists. What’s missing is execution — building faster, smarter, and with the right structures to mobilize capital.