AI Compute Shifts Toward Modular and Co-Located Power
Infrastructure providers are pivoting to containerized data centers and direct energy asset co-location to bypass grid bottlenecks.
PowerBank Corporation signed a Joint Development Agreement with Nodiac.ai to deploy modular, containerized data centers co-located with energy assets. This distributed speed-to-power model is designed to shorten transmission-queue bottlenecks by pairing energy generation directly with AI compute.
Other providers are similarly deploying modular systems to accelerate operational timelines. Digi Power X formed a subsidiary, USDC, to commercialize the ARMS modular data center system, a turnkey solution capable of converting a powered site into an operational center faster than conventional construction.
Scale is expanding rapidly for established operators. CoreWeave’s active power support grew from 70 MW at 10 data centers in 2023 to over 850 MW across 43 centers by the end of 2025. CoreWeave also leased 526 MW of critical IT capacity at Galaxy’s Helios campus for 15 years, a deal expected to generate average annual revenue exceeding $1B.
Grid capacity remains a primary constraint and risk. Galaxy’s Helios campus has 1.6 GW of approved grid capacity and a total potential capacity of 3,400 MW. Meanwhile, IREN is targeting ERCOT grid connections for its Sweetwater sites in the second quarter of 2026 and fourth quarter of 2027.
Utility providers and equipment manufacturers are flagging dependencies on sustained AI adoption. Entergy's investments in generation and transmission assets to support large-scale data centers depend on a limited number of customers. Bloom Energy and Flex's financial results could be adversely affected if the pace of AI adoption slows or if customers cannot secure reliable power and water within required timelines.
Regulatory and technical uncertainties persist across the sector. Core Scientific is evaluating how regulatory requirements governing utility interconnection and environmental impact might affect the cost and timeline of new sites. NuAI's revenue model relies on securing multi-GW scale anchor tenants and maintaining long-term power delivery agreements.