The Power Allocation

Liquid cooling is expected in 40% of AI data centers in 2026. At 100+ kW per rack, air cooling cannot remove heat fast enough.

Show Notes

Liquid cooling is no longer optional for AI infrastructure — it's the baseline requirement. The data center cooling market is projected to reach $31 billion by 2034. This episode examines the technologies, infrastructure implications, and heat recovery opportunities.

Key topics covered:

  • 40% of AI data centers deploying liquid cooling in 2026
  • Cooling market growing from $11.65B to $31B by 2034
  • Direct-to-chip, immersion, and CDU-based systems
  • AI-driven thermal management systems
  • Microsoft-Fortum heat recovery for district heating

Related keywords: liquid cooling data centers, immersion cooling AI, direct-to-chip cooling, data center thermal management, heat recovery data centers

Brought to you by Spring Street Management Group.

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What is The Power Allocation?

The AI boom isn't constrained by chips, algorithms, or talent. It's constrained by electricity.

The Power Allocation is a daily briefing on AI infrastructure — where capital is actually being deployed. Each episode cuts through the hype to examine the physical realities shaping the AI buildout: power constraints, grid interconnection, land acquisition, data center financing, cooling infrastructure, and utility relationships.

This isn't a software podcast. This is an infrastructure podcast.

Who it's for: Institutional investors, infrastructure allocators, data center developers, utilities, family offices, and anyone positioning capital for the physical layer of artificial intelligence.

What you'll learn:

Why power availability — not GPU supply — is the binding constraint on AI compute
How hyperscalers are locking in multi-decade power purchase agreements
Where data centers are relocating and why grid geography is reshaping the industry
The financing structures turning compute facilities into bond-like assets
What execution timelines, permitting delays, and interconnection queues mean for capital deployment
Format: 3-6 minute episodes. Dense. Clear. No hype.

New episodes daily. Subscribe wherever you listen.