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  4. AI data centers need hybrid power, not fully off-grid
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Hardware & Compute

AI data centers need hybrid power, not fully off-grid

Data Center Knowledge: Trump Onsite Power Push Meets AI Data Center Reality

Trump’s onsite power push highlights a hard reality: most AI data centers will likely need hybrid energy strategies rather than fully off-grid designs.

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President Trump has called for new large-scale AI data centers to generate their own electricity onsite and return excess power to local grids or communities. Industry experts say this is technically possible but extremely difficult to implement reliably at scale, since AI data centers have unique power demands that make 24/7 self-sufficiency challenging without grid connections. The practical barrier includes tight supply chains for equipment like turbines and batteries, permitting timelines, and fuel availability, with some turbine models sold out through 2031. Most AI data centers will likely need a hybrid approach combining onsite generation with grid power rather than operating fully off-grid.

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Elon Is Doing It Again: SpaceX Will Be The World’s Biggest AI Cloud

We wrote at length about how SpaceX’s plans for 10GW in 2027 was feasible, paving the way for +300b+ ARR. We received a lot of pushback from folks calling it impossible. Now, just two months later, we’re already seeing 3.6GW under construction across multiple sites, both existing and new. SpaceX has even revised its estimate up to ~13GW in 2027. This would be the largest amount of datacenter capacity ever built by any one company in that timeframe, roughly equivalent to all of Google

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Data centers are turning to old jet engines as the wait for power grows

The years-long wait for access to the grid and new turbines is causing data center builders to turn to an unusual, less efficient and less environmentally friendly solution: once-discarded jet engines.

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Ukraine’s drone strikes spur hasty Russian plans for underground data centers

Russian tech companies are scrambling to harden and hide their data centers underground after Ukrainian drone strikes damaged facilities housing AI supercomputers and disrupted cloud services for millions of Russian users. Meanwhile, the Kremlin is requiring data center owners to reserve computing capacity for emergency state needs and has even authorized possible use of foreign data centers. These consequences of Russia's war against Ukraine come as the Russian military has bombarded Ukrainian

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AI’s Expansion Hits the Limits of Local Power

Power shortages and local opposition are delaying data center projects, making AI expansion harder, costlier, and more dependent on scarce grid access.

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Cloud Revenue Hits $168B as AI Capacity Expands

Cloud infrastructure revenue reached $168 billion in the third quarter as providers brought higher-priced AI capacity online, reinforcing demand for new data centers even as power constraints slow delivery.

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OpenAI pitches data center power plants as a way to protect nearby areas

In an announcement on Monday, OpenAI says it will pilot its "Grid Protectors Program" at an upcoming data center in Effingham County, Georgia, where the company promises to free up to 1,000 megawatts of power during extreme weather or emergencies, enough to power air conditioners in around 700,000 homes. The announcement comes as opposition to data centers spreads across the US, in response to massive projects that have begun development and construction, frequently with little