The AI infrastructure race has moved beyond chips and data centers to a more fundamental constraint: power measured in gigawatts. The companies winning the AI race are now those securing massive energy supplies—a shift that changes competitive dynamics entirely.
A single frontier AI training run now requires power equivalent to a small city. Hyperscalers are signing multi-gigawatt power agreements, building private substations, and even investing in power plants. Vertical integration now extends to electricity generation.
Chip availability dominated 2023-2024 AI strategy. Power availability will dominate 2025-2026. You can order chips with money; you cannot order grid capacity that doesn’t exist. The lead time for major power infrastructure runs 3-7 years—an eternity in AI development cycles.
Companies that secured power agreements early gain compounding advantages. Those scrambling now face impossible timelines or premium pricing that destroys economics.
Geographic Redistribution
Power constraints are reshaping AI’s geography. Regions with abundant energy—hydroelectric Quebec, nuclear France, wind-rich Texas—attract AI investment. Traditional tech hubs with constrained grids lose relative advantage.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
