The AI buildout depends on decisions made by regulated utilities — entities most tech investors have never studied. Utilities are the quiet kingmakers of this cycle.

Utilities operate under regulatory frameworks that prioritize reliability and rate stability. Adding 200 megawatts of load for a single customer requires new substations, transmission upgrades, and generation procurement — all approved by state regulators.

Utility strategy is becoming a differentiator in AI infrastructure deployment. Companies that understand how to work within regulated frameworks have structural advantages that pure capital cannot replicate.]]>

Data centers don't just need power — they need cheap power. And the geography of electricity pricing is reshaping where AI infrastructure gets built.

For a 100-megawatt facility running 24/7, each cent per kilowatt-hour represents roughly $8.7 million in annual operating cost. A 5-cent differential means $43 million per year — nearly a billion dollars over a 20-year horizon.

Power pricing is creating durable geographic advantages that no amount of tax credits can offset. Capital follows the electrons.]]>

You can buy land. You can order GPUs. You can raise capital. But you cannot buy a faster grid connection. Interconnection is the binding constraint on AI infrastructure.

In PJM — the grid operator for the Mid-Atlantic — the interconnection queue now exceeds 2,500 projects totaling over 250 gigawatts. The average wait time has stretched beyond 4 years. Developers who secured interconnection agreements 3-5 years ago now hold strategic assets.

Capital is repricing assets based on interconnection status, not just location or capacity. The race for AI compute is increasingly a race for queue position.]]>