While the market is finally starting to grapple with the most unpleasant question of who will plug the funding gap needed to build out all the data centers required to make the AI dream a reality, a gap which Morgan Stanley recently calculated would be as large as $2.9 trillion in capex funding needs, of which at least $1 trillion will come in the form of debt (and mostly private debt)…
… there is another, just as critical question: who will fund the energy buildout that powers these data centers?
Recall, last December Morgan Stanley calculated that the US would need at least 36GW in new power to be brought online by 2028 to energize all the (yet to be built) data centers, a number which one year later is surely far higher.
Hellbound and Down 