Pat Gelsinger, former Intel CEO and now general partner at Playground Global, warned during an a16z podcast on October 9, 2026 that US energy capacity has been essentially flat for fifteen years, becoming the primary limiting factor in AI data center development. According to him, capacity growth is currently around 4% annually, a pace insufficient to meet industry needs, while gas turbine delivery lead times reach approximately eight years. He also predicted an increase in defaults on data center projects, a view shared by executives at Cerebras and Nebius. Gelsinger, involved in energy-focused ventures including Alva Energy and PowerLattice, emphasized that permitting reforms and grid modernization will be decisive for major operators to meet their timelines.
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