China prepared for the biggest bottleneck in the AI buildout, and they did so by accident. Now all that's left for the US and the EU is to catch up. And I doubt they can.
The topic is spot on and usually behind the headlines. Grid was for decades underinvested, especially in the US and simply unprepared to handle the forecasted demand.
One piece I'd add: while behind the meter generation should alleviate some pressure in the medium-term, the more sustainable solution to energy independence is nuclear. And China seems to be very well prepared on this front..
Great overview, thanks. What is needed are valuations, growth prospects, risks (if hyperscaler debt ultimately slows AI development via rising bond rates how does that slow energy development, if at all and when), will more efficient models displace demand for better but less efficient and economic frontier models, etc. Also, with global temperatures rising, what forms of generation are tolerable and sustainable?
interesting read, enjoyed it!
Thanks mate. Thought id try something a bit different 😁
Great article. Interesting that you include Bloom Energy, have you read the recent Hunterbrook investigation? (https://hntrbrk.com/investigations/bloom)
The topic is spot on and usually behind the headlines. Grid was for decades underinvested, especially in the US and simply unprepared to handle the forecasted demand.
One piece I'd add: while behind the meter generation should alleviate some pressure in the medium-term, the more sustainable solution to energy independence is nuclear. And China seems to be very well prepared on this front..
Great overview, thanks. What is needed are valuations, growth prospects, risks (if hyperscaler debt ultimately slows AI development via rising bond rates how does that slow energy development, if at all and when), will more efficient models displace demand for better but less efficient and economic frontier models, etc. Also, with global temperatures rising, what forms of generation are tolerable and sustainable?
Thanks for comment Bill!
All fair questions, and they do deserve an answer.
Just wanted to do a high-level post so gonna leave it at that for now! ;)