AI demand is exploding. But while there's been plenty of discussion on the GPU and memory supply chains, the real constraint to expanding AI capacity is power.

Data centers already account for ~5% of US power consumption. With data center power demand doubling every two years, demand would in theory outpace total US power generation by the mid-2030s.

Building a data center requires thoughtful planning around permitting, surrounding infrastructure, and anticipated power prices. In many cases, the variable cost of power determines whether or not a data center is viable at all.

I'm a former quant researcher at a major hedge fund who covered power and gas, and I've spent much of the last couple of years advising founders and investors on data center buildouts (procuring GPUs, negotiating with coal plants, identifying sites).

This primer on power and data centers is for a broader audience who senses there's an opportunity in energy markets and wants to get up to speed.

By the end of this primer, you'll understand:

• Part 1: how power plants work, how data centers are developed, and how companies might respond (for founders/investors).
• Part 2: how to price the US power markets (for traders).

If you're really interested in power, I'd advise you to read the whole thing. Hopefully you find it timely and interesting.