Intro

Editor’s note: The uncertainties of data center construction — like when, where, and how much to build — are as pressing as ever. So we’re revisiting a conversation with Brian Janous, co-founder and chief commercial officer at data center developer Cloverleaf Infrastructure. In this episode, he explains his theory of the ‘Watt-Bit Spread’, which offers insightful heuristics for understanding how data centers are driving change in the power sector.

Every data center company is after one thing right now: power. Electricity used to be an afterthought in data center construction, but in the AI arms race access to power has become critical because more electrons means more powerful AI models.

But how and when these companies will get those electrons is unclear. Utilities have been inundated with new load requests, and it takes time to build new capacity.

Given these uncertainties, how do data center companies make the high-stakes decisions about how much to build? How sustainable is the rate of construction? And how much will these data center companies pay for electricity?

In this episode, Shayle talks to Brian Janous, co-founder and chief commercial officer at data center developer Cloverleaf Infrastructure. Brian recently explained how he thinks about these questions in a LinkedIn post titled “The Watt-Bit Spread,” which argues that the value of watts is incredibly high right now, and the cost of those watts is too low. Shayle and Brian cover topics like:

The unclear data center demand and high costs that are making data center companies hesitant to build

How the skills required for data center development have shifted from real estate and fiber to energy

Why higher power prices are needed to incentivize new generation

Potential solutions for better pricing electricity and speeding up the construction of new generation

Recommended resources

Latitude Media: AES exec on data center load: 'It's like nothing we’ve ever seen'

Latitude Media: Mapping the data center power demand problem, in three charts

Latitude Media: Are we thinking about the data center energy problem in the right ways?

Catalyst: Can chip efficiency slow AI's energy demand?

Catalyst: Under the hood of data center power demand

Sequoia Capital: AI’s $600B Question

Credits: Hosted by Shayle Kann. Produced and edited by Daniel Woldorff. Original music and engineering by Sean Marquand. Stephen Lacey is executive editor.

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