Speakers:
Sean McDevitt, partner – Arthur D. Little (chairperson)
Brian Smith, director, nuclear reactor development – Idaho National Laboratory
Mark Gusakov, CEO – The Digital Infrastructure Alliance
John Chesser, CEO – QUANTICA INFRASTRUCTURE
Scott Bank, vice president & senior counsel, director, energy services – First American Title Insurance Company
Alex Hernandez, CEO – POWERBRIDGE
At a recent panel at Metro Connect USA 2026, of data centre operators and utilities explored how power generation, grid development and capital investment must evolve to meet this digital revolution.
Rebuilding the grid
John Chesser, CEO and co-founder of QUANTICA Infrastructure, highlighted the challenge of integrating new data centre demand into grids originally built for heavy industry.
“The United States built all of its power plants originally to serve steel, wool, and manufacturing. Those mills shut down decades ago, and now we are connecting modern compute infrastructure to outdated systems,” he explained.
Alex Hernandez, founder and CEO of POWERBRIDGE, added: “We are at a consequential moment – as important as the first power plant in 1882 or the advent of AC transmission from Niagara Falls.
“A new world is being built where markets exist today that people cannot conceive of,” he stated.
He noted that grid constraints in traditional data centre hubs, such as Ashburn, Virginia, are pushing expansion into areas with abundant energy, land, and fibre connectivity.
Nuclear power also featured prominently in discussions. Brian Smith, reactor development director at Idaho National Laboratory, outlined the role of existing and advanced nuclear technologies.
“We have a plan to get an extra 2.5 gigawatts on the grid by 2027 and a total of five gigawatts by 2029. Advanced Generation IV reactors are being turned on this year – four for the first time ever in the US,” he said.
Meanwhile, The Digital Infrastructure Alliance CEO, Mark Gusakov added that the current fleet of 94 nuclear plants already provides reliable, low-carbon power.
“Before we focus exclusively on building new nuclear energy, there is an abundance of energy in many places right now, and existing nuclear energy is one of them,” he stated.
Where capital meets execution
The panel stressed that investor interest in power infrastructure is driven by credible execution and location-specific solutions.
Chesser noted that high electricity prices unlock opportunity: “When power prices go to $80 or $90 per megawatt-hour, suddenly the whole power industry becomes very interesting.
“Gas plants make sense, solar makes sense, wind permits make sense to pursue. Even SMRs are taking off because investors can underwrite them.”
Meanwhile, Hernandez warned against hype and emphasised practical delivery.
“There are a lot of bad actors out there. Understanding who has actually run power projects before is everything. It’s not just about capital; it’s about execution, timeline, and cost discipline,” he noted.
Smith stated: “The investor community is still finding its footing. We regularly bring venture capitalists and institutional investors to the laboratory so they can see what we’re actually working on and where resolutions are being reached.”
Additionally, Gusakov highlighted the importance of geographic solutions, claiming: “Solar works where it’s sunny. Wind works where it’s windy. Battery storage is critical where there’s intermittency. The winners will be those who best match technology to geography.”
Overcoming bottlenecks
Execution risk and regulatory challenges remain key constraints, the panel warned.
Scott Bank, director at First American Title, stressed the importance of early diligence on real estate and land. “In the U.S., the mineral estate is often dominant, meaning subsurface rights can disrupt projects. Railroads are another example – a crossing issue can stop a project cold. Engage counsel early and do your land diligence.”
Hernandez added that success requires both courage and clarity.
“Many in the power industry wait for customers to align before investing. You need to commit capital under a sound thesis before all requirements are final. Distilling fiction from reality in load applications is equally critical,” he stated.
On regulatory hurdles for nuclear,Smith acknowledged progress with the US Nuclear Regulatory Commission (NRC), warning: “Construction permits are being granted ahead of schedule. Beyond that, enriched uranium supply and fuel fabrication capacity are the next bottlenecks.”
The road ahead
Panellists agreed that meeting AI’s power appetite requires diverse, reliable solutions.
Smith explained: “The capacity factor for nuclear power is over 90%. Firm, dispatchable energy is critical, and nuclear is excellent in that role. But we also need solar, wind, and battery storage – an ‘all-of-the-above’ approach.”
Hernandez pointed out that natural gas remains a critical bridge: “About 60% of the US grid is powered by gas, 20% by coal, 20% by nuclear. Direct contracting between data centres and new nuclear or hybrid generation is accelerating. Gas is indispensable in bridging the supply until these alternatives scale.”
“The current regulatory construct dates back to the 1930s. The demand from this industry is forcing updates. Hyperscalers want their projects built, and that pressure will move policy,” Chesser highlighted.
Conclusion
The panel concluded that AI-driven demand is reshaping how energy is produced, delivered and financed.
Success will require collaboration among utilities, developers, investors and policymakers, coupled with a willingness to invest in innovation, execute at scale, and overcome historical bottlenecks.
Gusakov summed it up: “Until we start pushing back and fighting ignorance with facts and intelligence, we will not make progress. Education, collaboration, and execution are the keys to powering the AI revolution.”
With AI’s insatiable appetite for compute, the challenge is clear: expand generation, modernise the grid, and ensure investors and developers can deliver power where it’s needed – reliably, sustainably and at scale.
