The grid is being pulled in three directions at once: hyperscalers are consuming every watt of available data center capacity, Moscow-linked hackers are probing the pipes of U.S. critical infrastructure, and Texas regulators are fighting with Entergy over how much gas is too much gas. It’s a reminder that electricity isn’t just generation and demand curves — it’s real estate, cybersecurity, and politics all at once.

Data Center Vacancies Plummet Amid Power Constraints

North American colocation availability has fallen to a record low of 2.3%, with major markets like Northern Virginia below 1%. JLL reports rents have jumped 50% in five years as hyperscalers gobble capacity years in advance. With grid interconnection wait times averaging four years, power is the gating factor: “Power has become the new real estate.”

For the grid, the math is stark: DOE estimates another 100 GW of peak capacity needed by 2030, on top of a RAND forecast of 130 GW of AI/data center demand. With nearly three-quarters of new space already preleased, smaller enterprises risk being shut out entirely — or forced into secondary markets where power, not proximity, drives investment.

Cisco, FBI Warn of Russia-Linked Hacks on Critical Infrastructure

The FBI says hackers tied to Russia’s FSB have been exploiting an old Cisco IOS flaw to compromise thousands of network devices across U.S. critical infrastructure. The intrusions focused on protocols linked to industrial control systems, raising alarms about energy sector exposure.

Cisco calls the group “Static Tundra,” but it’s the same FSB unit known as Berserk Bear/Dragonfly. These actors have a decade-long record of penetrating grid-adjacent systems and were behind SYNful Knock infections dating back to 2015. Their renewed focus on U.S. critical infrastructure underscores how cyber risk is now inseparable from grid reliability.

Texas Regulators Push Back on Entergy Gas Plants

Entergy Texas wants $2.4 billion to build 1.2 GW of new gas-fired generation — the Legend and Lone Star plants — to meet surging load growth. Regulators don’t dispute the need but say the utility skipped competitive bids and ignored cheaper alternatives.

The Public Utility Commission is considering hard or soft cost caps around $1.8 billion, leaving Entergy “backed into a corner.” Peak demand in the region is expected to climb 20% by 2028 and nearly 30% by 2034. Gas may be the near-term answer, but without competitive procurement, Texans could end up paying billions too much for reliability.

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Conversation Starters

• ElectricChoice.com – Electricity Rates by State (August 2025) – Average U.S. prices hit 13.17¢/kWh, up 5% year-over-year; California tops the list at 26¢+, while Texas still averages barely 10¢.

• Federation of American Scientists – When Fire, Heat, and Aging Grids Intersect – A deep dive on how old wires plus extreme weather compound risks, turning PSPS shutoffs into both fire-prevention and public health crises.

• Quartz – These 8 States Produce the Most Nuclear Power – Nuclear remains one-fifth of U.S. generation, and a handful of states dominate the supply — crucial as AI demand drives renewed corporate interest.

Good Bet

Quanta Services (PWR) – With utilities under pressure to harden and expand grid infrastructure against data center demand, wildfires, and cyber risk, Quanta’s engineering and construction pipeline is set to swell.

Bad Bet

Digital Realty (DLR) – With colocation vacancy under 1% in key markets and power connections delayed for years, even big landlords can’t deliver new capacity fast enough. Rent hikes won’t offset the bottlenecks forever.

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