26 27 The shape and scale of the energy build-out is also uncertain. For example, the generation mix is becoming more diverse, but the final mix and aggregate cost are unknown. Moreover, load factors vary widely across sources — from 90% for nuclear to just 20% for solar — which dictates transmission requirements. Deploying capital against this uncertainty is a challenge. Ongoing capital investments exceeding $260 billion annually are required to build the energy system (on top of the $450 billion per year needed for data centers) but requires de-risking in the context of uncertain policy, technology and demand environments. Investments today might be stranded in 20 years. 27 An optimized energy system must anticipate an AI-driven future, where AI has shifted from being a challenge to being an enabler of energy security, prosperity, and sustainability. Even today, basic smart systems support grid management and offer scalable opportunities that should be fully leveraged. AI can enhance the management, growth, and efficiency of the energy system. In permitting and compliance, AI - and particularly natural language processing (NLP) - can ease staff constraints through automated document review and regulatory interpretation. Future applications may include forecasting and managing wholesale market dynamics and interregional transmission. Finally, AI might be the catalyst for the breakthrough energy technologies in the future energy system - whether that be battery storage, carbon management, SMRs or even fusion - through physical AI models that can tackle advancements in materials science, supporting engineering and design, as well as modeling and analyzing diagnostic data. DELIVERING A SMARTER BUILD-OUT FOR THE LONG-TERM 4 The road to AI is paved with great data. Cutting red tape is not enough; government needs to reduce the cost of capital through offtake guarantees. Unattributed quote Unattributed quote Resolving this uncertainty requires a commitment to optimize future energy systems. This must be governed by an approach to building out energy supply and infrastructure that is constructed around paths of least resistance to accommodate local, regional, and inter-regional supply, transmission, and demand management realities.