Let's bring in Flex Central CEO Ryan Mallerie. The company operates over 40 data centers in 18 major markets. Ryan, great to speak with you.>> Hey Melissa, thanks for the opportunity to catch up. >> It it sounds like if it does count come down to power and cooling, etc., that there is some question about whether or not all of that money will actually be able to be deployed if the bottleneck is happening at power, at cooling, at water, etc. Yeah, that there is a ton of demand out in the marketplace for this ...

Power generated from fossil fuels rose to the highest in almost 9 months in Germany as cold weather and weak wind levels strain supply. https://t.co/tuQxq4vYjh ...

HOW DO YOU MAKE A RESPONSE TO THAT. HOW DO YOU REACT TO THAT. >> THANK YOU FOR HAVING ME ON YOUR SHOW.FROM OUR PERSPECTIVE, AS INFRASTRUCTURE INVESTORS, WE HAVE A PIECE APPROACH TO INVESTING IN INFRASTRUCTURE ASSETS AND A LONGER TERM TIME HORIZON, AND WE DO BELIEVE THAT A. I. INFRASTRUCTURE IS A SIGNIFICANT INVESTMENT OPPORTUNITY FOR US.NOW, HERE AT CARLYLE WE AREN’T DEVELOPING THESE ASSETS IN ISOLATION. WE HAVE TUNE A MUCH MORE COMPREHENSIVE VIEW, WHERE WE ARE LOOKING ACROSS THE VALUE CHAIN FOR A. I.INFRAS ...

By the end of this year, Pakistan’s cumulative solar imports are expected roughly to match the installed generation capacity of the national power system https://t.co/jwJrhMNOnm ...

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $8.3 billion, a decrease of 2% compared to Q3 2024, primarily due to weaker North America heavy and medium-duty truck demand, with unit volumes declining 40% year-over-year [6][12] - EBITDA was $1.2 billion, or 14.3% of sales, compared to $1.4 billion, or 16.4% a year ago; excluding non-cash charges, EBITDA was $1.4 billion, or 17.2% of sales, an increase of 80 basis points from the previous year [7][8][19] - Operating cash flow was strong at $1.3 billion, compared to $640 million a year ago, indicating improved credit metrics and capital allocation flexibility [23] Business Line Data and Key Metrics Changes - Engine segment revenues were $2.6 billion, a decrease of 11% from a year ago, with EBITDA at 10%, down from 14.7% due to weaker North American truck volumes [23] - Component segment revenue decreased 15% to $2.3 billion, with EBITDA at 12.5% compared to 12.9% a year ago, impacted by weaker on-highway demand [24] - Distribution segment revenues increased 7% to a record $3.2 billion, with EBITDA at a record 15.5% driven by higher power generation demand [24] - Power systems segment revenues reached a record $2 billion, an increase of 18% from a year ago, with EBITDA increasing from 19.4% to 22.9% [25] Market Data and Key Metrics Changes - North America revenues decreased 4% compared to 2024, with heavy-duty truck industry production down 34% and medium-duty truck production down 51% [9][12] - In China, revenues were $1.7 billion, up 16% from a weak quarter last year, driven by stronger unit demand, with industry demand for medium and heavy-duty trucks increasing by 50% [10] - India revenues were $713 million, an increase of 3% from a year ago, with power generation revenues increasing 41% due to strong data-centered demand [11] Company Strategy and Development Direction - The company announced a collaboration with Komatsu to develop hybrid powertrains for mining equipment, aiming to support customers' sustainability efforts [4][5] - The company is undergoing a strategic review of its electrolyzer business due to significantly lower demand expectations, with potential further charges anticipated [15][49] - The company expects near-term weakness in North America on-highway truck markets to persist, with a projected 15% decline in unit shipments from Q3 levels [12][27] Management's Comments on Operating Environment and Future Outlook - Management noted that the global trade and policy landscapes remain dynamic, presenting ongoing challenges, particularly with tariff costs increasing [13][15] - There is cautious optimism regarding the bottoming of North American on-highway markets, with expectations for demand recovery in the future [27] - Management emphasized the importance of clarity in trade and regulatory policies for reinstating guidance for 2026 [16][27] Other Important Information - The company faced $240 million in non-cash charges related to its electrolyzer business, reflecting lower demand expectations due to reduced U.S. government incentives [8][19] - The effective tax rate for the quarter was 32.7%, impacted by increased tax expenses related to recent U.S. tax legislation [21] Q&A Session Summary Question: Engine margins outlook for Q4 and power systems margin targets - Management indicated that engine margins are expected to remain under pressure due to product changeovers and additional costs, but efforts are being made to manage costs effectively [32][34] - For power systems, strong performance is anticipated, with continued investment for profitable growth, although incremental margin improvements may not continue at the same rate [34][35] Question: Capacity additions and future investments in data centers - Management confirmed that capacity investments for large engines are nearing completion, with expectations for a 30-35% revenue increase in the data center market for 2025 [39][40] Question: Impact of Section 232 tariffs - Management acknowledged the uncertainty surrounding tariffs and their impact on profitability, emphasizing the need for more clarity to predict future financial implications [43][45] Question: Performance of Accelera segment and e-mobility growth - Management noted that e-mobility is growing, particularly in bus applications, while the electrolyzer segment has faced significant challenges, leading to strategic reviews [60][61]

Now, according to the latest note from Morgan Stanley strategist Steven Bird, we are likely about 49 gawatts or so of power short to make all these AI dreams happen. Now, gigawatts can be confusing very very roughly. 1 gawatt is about 750,000 American homes worth of power. So, we're kind of talking about 40 million homes equivalent worth of electricity.That would be enough to basically power three times all the homes in Texas. So, how do we hit that supply and what companies may ultimately benefit Steven Bi ...

South Africa will rely heavily on private companies to build power generation as coal-fired plants that produce the bulk of its electricity are gradually retired https://t.co/6vJ9qsJIqR ...

Load Growth & Grid Investment - First Energy anticipates significant load increases due to data centers and electrification, necessitating investment in the transmission grid [2] - The company plans to increase its 5-year capital expenditure (CAPEX) plan for transmission by approximately 30% [3] - A strong and growing transmission grid is crucial to support AI, data centers, and chip investments [3] Labor Force & Training - First Energy is addressing labor needs through apprenticeship programs and hiring experienced line workers [5] - The company is actively training its workforce to support infrastructure investments and economic growth [5] Investment & Demand - First Energy ensures that hyperscalers and data center developers commit to paying for infrastructure investments to serve them [7] - This commitment provides confidence in sustained load and prevents existing customers from bearing the cost of potential overbuilding [7] Electricity Prices & Regulation - Generation accounts for 85% of the year-over-year increase in customer bills in four of First Energy's five states, where it operates as a wires-only company [9] - In the state where First Energy is fully integrated, year-on-year rates for customers were flat [9] - First Energy is working with regulators, governors, and customers to mitigate the impact of increasing generation costs [10]

Tesla Stock & Market Sentiment - The market had already priced in the anticipated removal of EV credits in the US, leading to a "pull forward" effect on sales [2] - Investors are willing to overlook current margin pressures on EVs due to the perception of Tesla as a high-growth company driven by future verticals [4][5] - The stock's high valuation is sustained by investor confidence in Elon Musk's leadership and the potential of future ventures like robo taxis, AI, and FSD, despite eroding fundamentals in the EV business [6] - The speaker added to their position at $290 and $320, and sells calls on the name, but would not add to their position at the current level of $443 due to the stock chart being too vertical [7][8] Energy Storage - Tesla's energy storage segment experienced year-over-year gross profit growth of over $800 million last quarter [3] - Tesla's power generation capabilities are seen as a significant asset, especially in electricity-constrained environments [3] Robo Taxis - The speaker expresses strong interest in Tesla's robo taxi business [7][8] - The cost of six Whimos is estimated to be equivalent to 30 Tesla robo taxis, suggesting a potential profitability advantage [8] - Tesla aims to have unmanned robo taxis operating in Austin and possibly San Francisco by the end of the year, which could serve as a catalyst for this new vertical [9][10] - Robo taxis are expected to be a fraction of the cost of services like Lift or Uber [10]

Core Insights - The demand for power from artificial intelligence data centers has led to record-high wholesale electricity prices [1] - Oil constitutes about one-third of total energy consumption, and while it has a limited role in power generation, its relevance may increase if prices remain low [1] Group 1 - The surge in electricity prices is primarily driven by the energy needs of AI data centers [1] - Francisco Blanch highlights the significant impact of AI on energy markets, indicating a shift in demand dynamics [1] - The potential for oil to regain importance in the energy mix is contingent on sustained low prices [1]