The Utilities Analyst Who Says the Data Center Demand Story Doesn't Add Up

The conversation centers on the future of utilities and power demand amid the rise of data centers and AI, with CreditSights' Andy DeVries offering a contrarian perspective. DeVries challenges the prevailing bullish sentiment, arguing that utilities are overbuilding data center capacity relative to realistic demand forecasts. He points to the forward power curves in Texas and natural gas markets as evidence that current expectations may be misaligned. The discussion also explores the increasing role of private credit in financing data center build-outs, potential risks to rate payers, and the complexities of regional transmission. DeVries suggests big tech involvement is crucial for nuclear power's future, particularly small modular reactors.