Generate Capital CEO David Crane warns US power companies face a financial risk from data centers' power infrastructure overbuilding, urging take-or-pay contracts to ensure data centers cover unused capacity costs. Crane, with $8bn assets under management, argues the rush to secure electricity for AI operations may create excess plants, with costs potentially falling on utilities. BloombergNEF projects US data center power demand surging from 34.7GW in 2024 to 106GW by 2035, outpacing grid capacity.

Companies like NextEra Energy plan 15GW of new plants for data centers over nine years, while utility spending rises 19% through 2030. Crane suggests overbuilding could become an opportunity if underused plants integrate into the grid to reduce costs for all customers, though the ultimate energy needs of AI remain uncertain.