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Morgan Stanley after their second annual Powering AI Summit:
-Likely significant US power shortage faced by data center developers, with particular risk in 2027 and 2028.
-Growing preference for off-grid solutions given political risk avoidance, and given rising challenges in securing power grid access.
-Improving terms of power + data center deals, but execution risks for project developers remain significant.
-Battery storage at data centers may become the new "bring your own power" dynamic in 2026. Having battery storage could be thought of as the new "political table stakes" - this can help a data center developer allay fears that their project could contribute to higher power prices during peak demand periods.
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