Generation co-location
Building a data center right next to a power plant so it can take electricity directly, without waiting on the public grid.
Ranks high (70/100) — set apart by current tension (80) and fragility to shocks (78).
Why it matters
It is the main way frontier campuses can energize in 2–3 years instead of 5-plus, so its legal fate directly governs near-term AI capacity.
Why now
FERC's rejection of the Talen–Amazon Susquehanna co-location amendment put a live regulatory ceiling on the model just as operators race to plug straight into nuclear and gas plants.
If Generation co-location runs short
Regulators block or claw back co-location rights over ratepayer cost-shift, stranding campuses that skipped the interconnection queue.
In depth · editorial + model
Siting compute on the customer side of the meter at a dedicated generator (nuclear or gas), drawing power without a standard transmission interconnection. It is the main way frontier campuses can energize in 2–3 years instead of 5-plus, so its legal fate directly governs near-term AI capacity. FERC's rejection of the Talen–Amazon Susquehanna co-location amendment put a live regulatory ceiling on the model just as operators race to plug straight into nuclear and gas plants. Regulators block or claw back co-location rights over ratepayer cost-shift, stranding campuses that skipped the interconnection queue.
The companies exposed to Generation co-location
GE VernovaGEVSupplier70
Siemens EnergyENR.DESupplier70
Bloom EnergyBESupplier70
The Williams Companies, Inc.WMBSupplier50
Mitsubishi Heavy Industries7011.TSupplier50
Energy Transfer LPETSupplier50
Baker Hughes CompanyBKRSupplier50034020.KSDoosan Enerbility034020.KSSupplier50TPLTexas Pacific Land CorporationTPLSupplier50
American Electric Power Company, Inc.AEPSupplier30
Public Service Enterprise Group IncorporatedPEGR&D30+ 1 more companies
How to think about it
- Constraints route around themselves at a regulatory price
- Speed-to-power is the prize
- Bypassing the grid still leans on the grid
What to watch
- FERC/RTO co-location rulings
- Ratepayer cost-shift proceedings
- Nuclear and gas co-location deals
- Islanding vs partial grid-tie terms
Frequently asked
What is Generation co-location?
Building a data center right next to a power plant so it can take electricity directly, without waiting on the public grid.
Why does Generation co-location matter for AI?
It is the main way frontier campuses can energize in 2–3 years instead of 5-plus, so its legal fate directly governs near-term AI capacity.
Who makes Generation co-location?
The companies the model tags as producers or suppliers of Generation co-location: Intersect Power, GE Vernova, Siemens Energy, Bloom Energy, The Williams Companies, Inc., Mitsubishi Heavy Industries.
Which companies are most exposed to Generation co-location?
Intersect Power, GE Vernova, Siemens Energy, Bloom Energy, The Williams Companies, Inc., Mitsubishi Heavy Industries — 13 companies in total are mapped to Generation co-location.
What happens if Generation co-location runs short?
Regulators block or claw back co-location rights over ratepayer cost-shift, stranding campuses that skipped the interconnection queue.
Where does Generation co-location sit in the AI value chain?
Generation co-location sits in the Energy layer of the AI value chain.
Go deeper on Generation co-location
- The materials, geographies and policies it depends on — heat-mapped
- Substitutes, relief valves and the domino chains if it tightens
- The live tension score, momentum and news drivers
- Four levels of analysis — from plain-English to strategic
model v0.7.0 · research, not advice
Model scores are illustrative reads from our model of the AI value chain — not investment advice.