REGULATION · US
Investors grow wary of dedicated power deals for AI data centers amid policy uncertainty
Financial backers are pulling back from long-term power purchase agreements and standalone power projects tied to AI infrastructure, citing unpredictable regulatory and environmental rules around data-center siting and energy consumption.
WHY IT MATTERS
Capital flight from data-center power contracts raises costs and delays for banks deploying large LLM workloads on-prem; cloud alternatives (AWS, Azure) become relatively cheaper and faster to scale.
Source: WSJ · 2026-10-11