AI energy arms race, Europe's nuclear pivot and the US battery storage boom

AI infrastructure buildout is colliding with energy reality this week, as hyperscalers race to secure power through any means available. Meanwhile, Europe rethinks nuclear, the US battery market surges to record territory and green hydrogen inches closer to grid-scale viability.

Is Microsoft betting $7bn on gas to power AI?

Microsoft and Chevron have entered an exclusivity agreement to co-locate gas-fired power plants with an AI campus near Pecos in West Texas's Permian Basin. The proposed facility, backed by investment firm Engine No. 1, would initially generate 2,500 MW and scale to 5 GW, with a price tag of roughly $7bn. Construction could begin as early as late 2027, making it one of the largest corporate energy projects in US history.

Are hyperscalers building energy islands?

A growing number of data centre operators are bypassing the grid entirely to avoid years-long interconnection queues. Roughly 30% of all planned US data centre power capacity is now expected to come from on-site generation, up from near zero a year ago, according to market intelligence firm Cleanview. Federal regulators have ordered PJM, the nation's largest grid operator, to rewrite its rules on data centres pairing directly with power plants.

Will AWS build a data centre next to a nuclear plant?

Amazon Web Services has proposed a data centre campus on 2,000 acres adjacent to Constellation Energy's Calvert Cliffs nuclear plant in Maryland. The concept design envisions up to eight data centres drawing 500 MW via a power purchase agreement. Calvert County commissioners have responded by proposing a 24-month moratorium on all data centre approvals pending a full environmental impact study.

Is Europe finally embracing nuclear?

The European Commission's 8th Nuclear Illustrative Programme projects EU nuclear capacity growing from 98 GW to between 109 GW and 150 GW by 2050, backed by an estimated €241bn in new investment. Germany has agreed to drop its opposition to nuclear in EU legislation in what officials call a sea-change policy shift. The Commission has created a €200m guarantee for SMR investment, targeting commercial deployment by the early 2030s.

Can the US install 24 GW of battery storage in one year?

US developers plan to add 24.3 GW of new battery storage to the grid in 2026, up from a record 15 GW in 2025. Texas accounts for 53% of planned capacity at 12.9 GW, followed by California at 3.4 GW and Arizona at 3.2 GW. Battery storage now represents 28% of all planned US generating capacity additions this year, second only to solar at 51%, according to the EIA.

What is Enervenue doing with $300m for hydrogen batteries?

Enervenue Holdings has raised $300m in Series B funding led by Full Vision Capital to build a large-scale metal-hydrogen battery manufacturing facility in Changzhou, China. The lithium-free technology, originally developed for NASA and refined at Stanford University, targets an initial 250 MWh production line with construction starting late 2026 and a medium-term goal of 1 GWh capacity.

Can a Superfund site produce green hydrogen?

Kit Carson Electric Cooperative is pressing ahead with a $231m green hydrogen project at a former Chevron molybdenum mine in Questa, New Mexico, funded through the USDA's Empowering Rural America programme. The plan pairs a 50 MW solar array with electrolysis facilities to produce hydrogen for stationary fuel cells, storing renewable energy four to six times longer than conventional batteries.