Summary of Key Takeaways from the Powering AI Summit Industry Overview - The report focuses on the **AI and Tech Diffusion** industry in **North America**, particularly the challenges and opportunities related to power supply for data centers. Core Insights 1. **Power Shortage Risk**: There is a significant risk of a power shortage for data center developers in the US, with an anticipated **10-20% shortage** over the next several years, particularly in **2027 and 2028** [3][7][10]. 2. **Off-Grid Solutions Preference**: A growing preference for off-grid power solutions is noted, driven by the desire to mitigate political and execution risks associated with on-grid projects. This trend is expected to continue as developers seek to avoid issues related to power prices, water usage, and project footprint [4][7]. 3. **Improving Deal Terms**: There are improving terms for power and data center development transactions, although execution risks remain significant due to supply chain and labor challenges. The year **2026** is anticipated to be critical for project execution success [9][10]. 4. **Labor and Equipment Shortages**: There are increasing challenges related to securing skilled labor, particularly in data center design and construction, which could impact project timelines and costs [11]. 5. **Battery Storage Dynamics**: Battery storage is expected to become a critical component for data centers, potentially leading to a "bring your own power" dynamic in **2026**. This could help alleviate concerns about contributing to higher power prices during peak demand [11]. 6. **Natural Gas Demand**: Natural gas is projected to play a key role in meeting rising power needs, contributing to a positive market outlook for the sector [13]. 7. **Micro-Grid Competitiveness**: Micro-grids are becoming increasingly competitive compared to traditional grid solutions, offering better emissions profiles, improved price visibility, and attractive performance obligations [14]. Additional Noteworthy Points - **Long-Term Contracts**: Most new data center project agreements are for delivery in the **2028-2030** timeframe, indicating a potential shortage of power for developers in **2026** and **2027** [10]. - **Demand for Compute**: There is a strong demand for compute power, with expectations that the compute needs will exceed supply, particularly as AI capabilities improve [17][25]. - **Investment Opportunities**: Recommended investment positions include companies involved in "time to power" solutions, such as utilities, Bitcoin conversion opportunities, and natural gas players that can provide bundled solutions [17]. - **Stock Performance Drivers**: The performance of stocks related to power and data center solutions is expected to be increasingly driven by the success of project execution in the coming years [9]. Conclusion The Powering AI Summit highlighted critical challenges and opportunities in the AI and tech diffusion sector, particularly regarding power supply for data centers. The insights gathered suggest a significant shift towards off-grid solutions, a focus on improving deal terms, and the necessity for strategic investments in the evolving landscape of AI infrastructure.