Core Insights - The U.S. power sector narrative has shifted from a linear energy transition to a strategic constraint on economic growth due to the rapid demand from AI-driven data centers [2] - Data centers are projected to account for up to 12% of total U.S. electricity consumption by 2028, significantly increasing from approximately 4.4% in 2023 [2] - The demand growth from data centers is expected to drive a 5.7% annual energy demand growth in the U.S. over the next five years, contrasting sharply with the 0.2% annual average in the 2010s [2] Industry Dynamics - The demand for electricity is now concentrated, with data centers requiring high reliability and often needing to be located near power sources and fiber networks [3] - There is a scarcity of available firm power, as offtakers prioritize reliability over just energy attributes, leading to a market shift towards "reliability as a product" [3] - The investment logic has shifted from a focus on "cheap energy" to "deliverability + firmness," reflecting the need for assured service and stable capacity [3] Infrastructure Challenges - The U.S. power sector faces execution bottlenecks rather than capital constraints, with significant delays in interconnection and equipment lead times [3] - Approximately 2 terawatts of utility-scale solar and battery energy storage systems (BESS) are in interconnection queues, with only about 2% of queued capacity being built annually [3] - Lead times for critical equipment, such as generation step-up transformers, have extended to around 143 weeks, indicating a need for streamlined execution platforms to manage resources effectively [3] Policy and Geopolitical Context - The U.S. Department of Energy's "Speed to Power" initiative aims to accelerate large-scale generation and transmission development to enhance competitiveness in the AI race [2] - China's rapid expansion in thermal generation and solar capacity highlights the competitive advantage in building power plants, with China adding over 50 GW of thermal generation and 277 GW of utility-scale solar in 2024 compared to the U.S.'s much lower figures [2] - The evolving landscape of energy supply chains is increasingly influenced by national security interests, as reliance on certain China-linked energy inputs is being constrained [2]