January 17, 2026

Top news (3)

• Large renewable procurement for hyperscaler load:Clearway signs 1.2 GW PPAs with Google for data centers across Missouri, Texas and West Virginia (SPP/ERCOT/PJM) under long-term PPAs (up to 20 years). Construction is to begin this year; first sites expected online 2027–2028; cited as >$2.4bn infrastructure investment.
• PJM capacity intervention proposal:Trump pushes emergency power auction for tech-funded power plants — administration and governors urged PJM to run a one-time auction for 15-year power contracts, aiming to support about $15bn of new generation, with costs assigned to hyperscalers to avoid higher residential bills (requested by end-September).
• Onsite generation permitting tightens for hyperscalers:EPA Cracks Down on xAI Unauthorized Datacenter Power Generation — EPA determined methane gas turbines at xAI’s “Colossus 1” in Tennessee were not exempt even if temporary; xAI later received permits for 15 turbines and is operating 12 permitted machines.

Key deals & projects (by region)

North America

• Texas (AI/HPC, wind-powered campus):Soluna, Metrobloks partner to build Project Kati 2 campus

  • Project Kati 2: 100+ MW AI/HPC data centre in Willacy County, Texas.
  • Phase two of a 166 MW wind-powered campus; expansion roadmap supporting >300 MW.
  • Structure: Metrobloks leads design/development/leasing/operations; Soluna provides site control, power entitlements, electrical equipment and development expertise.

• Nebraska (interconnection / carrier hotel expansion):1623 Farnam to open second Omaha interconnection facility in 2028

  • Closed on a second interconnection facility in Omaha adding at least 5 MW.
  • Target operations: mid-2028; complements 1623 Farnam’s flagship carrier hotel.

• Louisiana (hyperscale campus financing / regulatory risk):Questions Mount Over Meta Data Center Financing in Louisiana

  • Meta disclosed a financing deal in which Blue Owl will own 80% of the Richland Parish campus; Meta retains 20% and leases in four-year increments.
  • Entergy says the arrangement yields $650m in customer savings; critics warn ratepayers could inherit costs for power plants and transmission built for the project.

• Canada (broadband capacity buildout):Canada funds over $11M to expand Saskatchewan broadband

  • Federal funding >CAD 11m for high-speed internet projects across Saskatchewan.
  • Includes CAD 9,427,955 to Flex Networks (serving 1,147 households) and CAD 1,525,382 to Access Communications (serving 555 households); several projects expected by March 2027.

Asia-Pacific

• Thailand (FDI pipeline, large IT load approvals):Thailand BOI approves seven major data centre and hosting projects

  • BOI approved 7 data centre/hosting projects totaling >$3.1bn.
  • Examples of stated IT loads include 223 MW (True) and 120 MW (GSA).
  • Locations cited: Chonburi, Samut Prakan, Rayong, Bangkok.

• India (listed platform leasing momentum):CapitaLand India Trust signs second hyperscaler lease for Tower 2

  • Second long-term lease signed with an unnamed global hyperscaler for Tower 2 at CapitaLand DC Navi Mumbai.
  • Tower 2 plan: 37 MW IT load and 55 MW gross power capacity.
  • Timeline: completion expected Q4 2026 with phased handover in H1 2027.

Power, grid & interconnection highlights

US generation mix and storage outlook

• Solar + batteries continue scaling:Solar drives U.S. electricity generation growth through 2027

  • EIA STEO (Jan 2026) forecasts electricity generation up 1.1% (2026) and 2.6% (2027) to 4,423 BkWh.
  • Utility-scale solar generation forecast: 290 BkWh (2025) to 424 BkWh (2027) with almost 70 GW new solar coming online.
  • ERCOT battery storage expected to grow from about 15 GW (2025) to 37 GW (end-2027).
  • Notes regional natural gas generation grows partly due to rising data centre demand.

• Battery project pipeline (selected):US utilities and developers advance large-scale battery storage projects

  • Duke Energy commissioned a 50 MW/200 MWh BESS at the former Allen coal plant in North Carolina (cost ~$100m) and will start construction on a 167 MW/668 MWh BESS in May; both qualify for federal ITCs.
  • Fluence to supply Gridstack Pro for BrightNight/Cordelio’s 300 MW/1,200 MWh Pioneer Clean Energy Centre in Arizona (PPA with APS; COD expected April 2027).
  • Elevate Renewables acquired the 150 MW/600 MWh Prospect Power project in Virginia (operations slated mid-2026).

UK & Europe renewables financing

• Debt package for multi-market buildout:egg Power secures £400m NatWest financing for 500MW renewables
  • Up to £400m debt financing to develop up to 500 MW of solar/wind across the UK and Europe (initial UK construction facility supports ~250 MW).
  • Operational target window: Q2 2026 to Q1 2027; longer-term ambition 1.5 GW by 2028 under long-term PPAs.

Policy & regulation (focus on permitting, emissions, and utility cost allocation)

United States

• Federal air permitting now explicitly covers certain portable turbines at data centres:EPA rules data centers’ large generators must meet Clean Air

  • EPA rule requires semitruck-sized portable gas turbines used by data centres to meet Clean Air Act emissions limits and to be federally permitted.
  • Review began Dec 2024; targets methane gas turbines used at hyperscale sites (medium and small turbines receive exemptions).

• Mid-Atlantic permitting reforms responding to campus-scale load:Mid-Atlantic Energy Permitting Evolves Amid Data Center Growth

  • Describes 2026 reforms to centralize state review and contemplate regulated utility ownership of generation.
  • Highlights permitting/legal gaps for behind-the-meter co-located generation; cites campus demands of 500–1,000 MW.

• State-level environmental scrutiny and permitting pushback:

  • Virginia faces unchecked data center growth threatening climate goals argues rapid, largely unregulated expansion is stressing energy/land/water and threatens climate goals; also flags that utilities are legally required to serve and that ratepayers are subsidizing buildout.
  • Florida lawmakers introduce wide-ranging environmental bills in 2026 includes data centre permitting (House Bill 1007) among broader environmental measures.

Market signals & technology notes (selected)

• Leasing and economics:Data centers surge into 2026 on record AI demand cites record leasing and hyperscaler demand in 2024–25, with access to power as the primary constraint; references stabilized NOI exceeding 10% and development profit margins topping 50%.
• High-density AI infrastructure standardisation:Schneider Electric and NVIDIA release validated AI reference designs covers six validated AI reference designs spanning rack densities from 40 kW to 142 kW and facility sizes up to 7.5 MW.

Two-line wrap

Cost-allocation and permitting are tightening in the US just as hyperscalers accelerate long-dated power procurement and push for new capacity mechanisms.
Outside the US, Asia continues to approve and pre-lease large IT-load projects, while renewables and storage financing remains central to near-term energisation timelines.