Part 8/12:
Texas offers a case study: despite its abundant land and previous success in attracting data centers, the state’s power grid faces strain during winter storms, with proposals for data centers consuming the equivalent electricity of over 150 million homes—far exceeds current capacity. Companies are exploring innovative, localized solutions like small modular nuclear reactors, exemplified by firms like Ollo, which specializes in nuclear microgeneration technology.
The key takeaway: without sufficient, reliable power, even the most advanced AI hardware cannot operate efficiently. Building the necessary infrastructure—from grid upgrades to nuclear solutions—will take years, making power the true "binding constraint" in AI's rapid expansion.