AI, Data Centers, and the Infrastructure Needed to Power Them | a16z

The U.S. energy grid faces a critical bottleneck in power delivery, necessitating a shift from top-down mechanical systems to decentralized, software-defined architectures. Modern energy demand, driven by AI and industrialization, requires flexible, modular solutions that prioritize rapid deployment and high utilization. Radiant addresses this through mass-producible, portable micro-reactors designed for off-grid applications, while Heron Link utilizes solid-state transformers to enhance grid efficiency and bidirectional power flow. Both companies emphasize a manufacturing-first philosophy, moving away from traditional field-based construction to factory-integrated production to lower costs and accelerate scaling. By integrating these modular technologies, the grid can evolve into a resilient, intelligent network capable of supporting diverse, spiky loads. Data centers, when equipped with advanced power electronics, can further stabilize this infrastructure by increasing overall system utilization and providing essential grid-forming capabilities.