Power costs drive AI data center locations, Moocoo Ventures says
XLU•Moocoo Ventures says AI data centers will favor locations with low-cost power over cities. It cites an IEA projection that data center electricity use will more than double to about 945 TWh by 2030.
1. Power shapes locations
Moocoo Ventures’ analysis says energy costs will drive AI data center locations toward low-cost power sources rather than cities. It argues new projects will need creditworthy hyperscaler offtake agreements and competitive power costs to secure financing as speculative construction loses funding.
2. Demand and energy supply
The analysis cites an IEA projection that data center electricity consumption will more than double to around 945 TWh by 2030, requiring substantial new energy infrastructure. It argues coal remains the lowest-cost global option for continuous, large-scale power, while wind and solar require storage and backup.
