AI Meets the Physical Economy

The rapid commercialization of autonomous trucking and the escalating physical infrastructure requirements for AI power represent two pivotal shifts in the industrial landscape. Autonomous trucking is transitioning from technological proof-of-concept to serial production, with companies like Aurora and Kodiak already logging hundreds of thousands of driverless miles. This shift promises a 20% reduction in cost per mile and significant utilization gains, supported by data showing that most commercial facilities are within two miles of highway ramps. Simultaneously, the AI build-out is straining the power market, creating a seller’s market where equipment providers are booking orders as far out as 2032. While utilities argue for grid-based solutions, a growing market for on-site power generation is emerging to bypass grid capacity bottlenecks. These developments underscore that the next phase of technology adoption is increasingly dictated by the physical economy's ability to build and scale critical infrastructure.