Competing Market Dynamics

The U.S. artificial intelligence arms race will require unprecedented investment in new infrastructure. El Cap is at the forefront of developing the infrastructure that will unlock the potential of AI in the United States.

There are three competing dynamics in the electricity sector that create both risk and opportunity. There is no single solution to address all three of these dynamics. For example, the cleanest solution may not be the lowest cost, or the fastest solution may not be the cleanest. These tradeoffs are at the center of every company’s energy strategy and successfully navigating these dynamics will require new solutions and creative approaches.

Demand for Compute

The convergence of AI at scale and continued cloud expansion is pushing compute demand higher and tightening capacity. Other factors, such as consumer and industrial electrification, will also play a role in driving demand.

Rising Costs

As demand for power increases, supply will struggle to keep pace, which will put upward pressure on the cost of power. This dynamic will shape market design, technology choices, policy, and politics.

Decarbonization

Long-term decarbonization is a must-have and will require creative strategies and significant investment in new generation sources, including traditional and emerging technologies.