We have entered a new energy arms race where AI, Bitcoin mining, and geopolitics collide to fuel the greatest buildout of power infrastructure in history.
It's the Golden Age of energy production:
- The capital being funneled into datacenters will be a boon to energy abundance. More nuclear will be built (geopolitical pressures are reversing the pendulum swing). Drill baby drill for oil: regulations will become more favourable for fossil.
- Bitcoin miners walked so AI could run (by building out sites over the last 5 years).
- Infrastructure remains a challenge wrt bottlenecks in permitting, transmission, and construction will limit how fast it can actually be built.
AI is coming for our jobs and our energy:
- AI is power-hungry and well capitalized. It's outcompeting miners for energy sites, miners are diverting infrastructure to AI, & more mining power contracts will be broken.
- AI hyperscalers are the new energy barons. AI demand will drive more new energy capacity over the next 5 years than most traditional sectors did in the last 3 decades.
Bitcoin Mining is the pioneer species accelerating energy abundance:
- Miners will move to the edges (geographically and wrt energy sources).
- Full stack miners with integrated energy are better positioned in developed countries.
- Miners will build out and shore up infrastructure in developing countries, like they pioneered sites here for AI.
