Investment Rating - The report indicates a shift in the technology sector from a chip-constrained environment to a power-constrained one, emphasizing the importance of power readiness in market valuation [7][8]. Core Insights - The global technology sector is facing a significant challenge due to the scarcity of high-density electrical power, with electricity demand from data centers expected to exceed 1,000 TWh in 2026, comparable to Japan's annual consumption [5][6]. - The North American market is projected to experience a shortfall of 19 GW in grid-ready power by 2028, leading to potential stranded capital risks [7]. - Time-to-power (TTP) has emerged as a critical driver of enterprise value, with delays costing companies significant revenue [8]. - A proactive approach is necessary for both industry and government to address power constraints, including improving supply chain visibility and diversifying power generation [9]. Summary by Sections The Macroeconomic Landscape - Energy availability is now the primary factor for site selection in the industrial landscape, surpassing labor and tax incentives [10]. The 1 GW Standard - Gigawatt-scale data centers are being constructed with timelines significantly shorter than traditional industrial infrastructure, consuming power equivalent to that of a large city [11]. Factors Driving Change - Rack density has increased from 15 kW in 2023 to over 100 kW in next-generation AI clusters, necessitating locations with abundant power [12]. - AI queries are approximately 10 times more energy-intensive than traditional queries, creating a high-density demand that legacy grids struggle to meet [13]. - Hyperscalers are investing over $600 billion annually, but project delays are common due to long lead times for necessary infrastructure [14]. The Silicon vs. Steel Paradox - The digital economy relies on Moore's Law, while physical infrastructure development is constrained by long industrial cycles, creating a gap that poses challenges for the industry [15]. The Infrastructure Latency Gap - A significant mismatch exists between the rapid pace of the tech industry and the slow regulatory processes of the utility sector, with interconnection queues exceeding 2,000 GW in major markets [18]. Owner-Operator Power Model - Companies are increasingly adopting owner-operator strategies to control their power infrastructure, reducing interconnection latency and gaining competitive advantages [19][21]. Trade Dynamics - Global trade policies have introduced volatility in the renewable energy sector, with tariffs significantly increasing project costs in the U.S. compared to other regions [22][23]. The Physical Bottleneck - The supply chain for high-voltage transformers is under strain, with lead times increasing dramatically and prices rising significantly [25][26]. The Baseload Frontier - The private sector is exploring small modular reactors (SMRs) as a viable energy source for continuous AI operations, although fuel supply chains present challenges [28][29]. Efficiency Creates Capacity - Companies are implementing direct-to-chip liquid cooling and reusing waste heat to enhance energy efficiency and capacity [30][31]. Strategic Procurement - Organizations are shifting to AI-led procurement models to better manage volatility and risks in the supply chain [32][33][34]. A Practical Blueprint for Leaders - The report outlines a readiness roadmap for addressing power shortfalls, including diagnostic audits, supply chain harmonization, and operational autonomy [36]. The Convergence of Atoms and Bits - The report emphasizes the need for a fundamental shift in mindset, recognizing that compute capacity is inseparable from power capacity, and advocates for a co-engineering approach to grid development [38][39][41].