The Changing Textbook on AI Energy

Talen Energy (TLN) is set to pay $3.8 billion for two of the most efficient power plants in the U.S...

So they're not dusty fossil fuel assets... These gas-fired plants are ready to power the AI infrastructure of the future.

The Moxie Freedom Energy Center in Pennsylvania and the Guernsey Power Station in Ohio were built for high-capacity, 24/7 output.

And that's exactly what AI data centers need to run their systems.

Talen's CEO Mac McFarland said Moxie and Guernsey are "the closest thing to adding another nuclear plant."

As we detailed last week, nuclear power is the holy grail of round-the-clock energy. But it takes years to bring those plants on line.

So Talen is looking at the next best option for consistent and reliable electricity for the AI era. In the process, it's also exposing a massive energy bottleneck.

As AI outgrows the U.S. power grid, energy companies are snapping up natural gas infrastructure...

They've spent more than $34 billion acquiring gas-powered plants to meet the relentless energy demand of AI data centers. And that number is climbing.

The strategy is clear: Don't build new energy infrastructure if you can help it. Buy what already works. Talen's approach is a textbook example of that...

The company locked in a 10-year, 960-megawatt energy agreement with Amazon (AMZN) in 2024 to power its data centers. Then it bought the plants to deliver that power directly, as needed.

Talen has positioned itself to capitalize on AI's huge energy demand. And the market is rewarding its strategy...

Talen's stock is up 78% year to date and 225% over the past year. After the company announced its Moxie/Guernsey deal on July 17, TLN shot up 24% in a single day.

The problem is, there's a finite supply of top-tier gas-fired plants...

Once these assets are scooped up, the only option is to build. That's where the power bottleneck begins.

Building new gas-powered plants takes five to eight years under the Federal Energy Regulatory Commission's ("FERC") current rules.

The approval process is painfully slow. Permitting, environmental reviews, and interconnection queues all add up to long delays.

But AI needs steady, reliable power right now. And with nuclear off the table in the near term, companies are begging for reform.

A looming energy crisis could stall the AI revolution...

AI data centers already consume more energy than some U.S. cities. And that demand is doubling every few years.

There's no path forward without generating new power. Building that capacity under FERC is just too slow to meet the soaring demand.

Talen's planned acquisitions are adding pressure for regulatory changes. But policymakers need to act fast.

If they don't, the U.S. could choke the most transformative technology wave since the Internet.

Regards,

Joel Litman
July 30, 2025

P.S. You have one more day to prepare for the "AI Bottleneck" – an energy crisis that could wipe out trillions of dollars from the markets.

It's no secret that AI needs an endless supply of energy. And the U.S. power grid is struggling to meet that demand.

This is setting up the biggest investment opportunity we've found in our entire 15-year history. The brewing crisis in the AI market is already catapulting a handful of stocks to new highs.

Click here to learn how you can profit from this trend... and also protect your wealth.