Something most people miss about this buildout -- these data centers are now the single largest driver of new natural gas pipeline construction in the US. The EIA reported data centers will consume 12% of US electricity by 2028, up from around 4% in 2023.
The Bitcoin mining angle is interesting here. When these AI data centers overbuild and demand dips, miners are the only buyers who can absorb stranded power profitably on short notice. We saw this play out in Texas already -- ERCOT demand response program pays miners to curtail, which subsidizes the grid buildout that AI companies need.
The "cheap compute if it fails" take in the other comment is not quite right either. Data centers are specialized -- AI training clusters use custom cooling and power density that does not easily repurpose for general hosting.
Something most people miss about this buildout -- these data centers are now the single largest driver of new natural gas pipeline construction in the US. The EIA reported data centers will consume 12% of US electricity by 2028, up from around 4% in 2023.
The Bitcoin mining angle is interesting here. When these AI data centers overbuild and demand dips, miners are the only buyers who can absorb stranded power profitably on short notice. We saw this play out in Texas already -- ERCOT demand response program pays miners to curtail, which subsidizes the grid buildout that AI companies need.
The "cheap compute if it fails" take in the other comment is not quite right either. Data centers are specialized -- AI training clusters use custom cooling and power density that does not easily repurpose for general hosting.