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AI Energy Crisis Solution?

Jan 21, 2026
The discussion dives into the Trump administration's bold $15 billion initiative, urging tech firms to invest in power plants to meet AI's rising energy demands. Insights on the impact of this plan on the U.S. power grid and consumer costs reveal the urgency of addressing energy supply and reliability. The debate between renewable energy versus consistent power sources highlights the challenges faced by data centers. Personal anecdotes illustrate the strain on local utilities, emphasizing the need for accountability in energy consumption.
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INSIGHT

AI's Rapid Power Demand

  • Data centers and AI training are driving a surge in electricity demand that utilities struggle to meet.
  • Jaden Schaefer argues new physical power plants and capacity are urgently needed to avoid reliability issues.
ADVICE

Use Long-Term Contracts To Build Capacity

  • Have tech companies bid on 15-year power contracts to underwrite new generation construction.
  • Long-term contracts create certainty that accelerates financing and building of power plants.
ANECDOTE

Real-World Band-Aids On The Grid

  • Jaden recounts Microsoft offering $1 billion to recommission Three Mile Island as a way to secure power.
  • He also mentions an XAI data center using thousands of diesel generators when grid supply fell short.
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