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- [00:00]
IBM Representative
So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now a Global workforce of 300,000 can use AI to fill their HR questions. Resolving 94% of common questions, not noise Proof of how we can help companies get smarter by putting AI where it actually pays off. Deep in the work that moves the business. Let's create smarter business. IBM,
- [00:33]
Zoe Yunovich
Bloomberg Audio Studios, Podcasts, Radio News
- [00:37]
Interviewer Danny
AIR is driving a surge in electricity demand, fueling billions of dollars in new energy infrastructure. UK utility National Grid is betting on that Demand With a $1.75 billion investment in Julian, the US developer is helping power Microsoft's data centers in Texas. Joining us now is the National Grid CEO CEO Zoe Unovich. Zoe, so great to see you. And look, this is a really interesting idea. I wonder if in some ways this does represent a pivot that for utilities the most important thing that you need to add capability, that you need to add investment in is around AI versus kind of traditional electricity demand.
- [01:19]
Zoe Yunovich
Yeah, I mean, firstly, thanks for having me, Danny. It's great to be here, especially on such an exciting day for us. National Grid has long been invested in delivering energy through long term infrastructure to our customers. And so in some respects you could say this is exactly what this acquisition that we've invested in today is all about. But to your point, we are now facing that sector of the market that is growing so rapidly. I mean the increase in power demand coming from data centers and just more generally from the AI evolving economy, it's an exciting place for us to find ourselves.
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Interviewer Danny
It feels like it's really rewriting, rewriting things really quickly. Zoe and I wonder how far away you think we are from being able to can keep up with the demand from it.
- [02:05]
Zoe Yunovich
Well, that's why I think this investment is so important for us. What we've done in investing in Joule and which is a technology enabled energy company is find ways to actually bring the very best that we can across different sectors to harness that innovation and get the right solutions so that we can actually get speed and scale power to customers really quickly. And if you take a look at the specific project that we're developing, Project Kilby, you can actually bring the very best of the cultural opportunities from Microsoft, from an energy major like Chevron, through Julian, who's brought that innovation together. And that's what's giving us, I think, a real advantage, real pace to deliver the power but also the opportunity to scale that over time.
- [02:50]
Interviewer Danny
You know, I myself lived in London for about seven years. I'm very familiar with National Grid. But to see them, to see you coming over into the US itself is an interesting turn. Do you think this is the start of many more opportunities for you in America?
- [03:06]
Zoe Yunovich
It's interesting Danny, most people aren't aware but we already have quite a significant scaled position in the US we are servicing already both the LDCs, the local distribution companies for gas in both Massachusetts and New York. And of course we have a very big presence there around our electric utilities as well. So we have in our five year horizon as an example about 70 billion pounds. So let's say between 90 to sort of 95 billion USD of which we have about 40% of that being invested, invested in the northeast of the U.S. so we've got great capability not just across the broader company but already in the US that helps us to bring momentum behind this acquisition that we're announcing today.
- [03:49]
Interviewer Danny
There are many who are, you know, see the opportunity like you do Zoe, and trying to provide energy and different utility to datacenter projects. Is there any part of the market you think looks frothy?
- [04:01]
Zoe Yunovich
Look, I think what we have found is that whilst the numbers of data center in the queue are significant, that the drivers behind needing this speed to power continue to be solidified in all of the conversations that we're having. And so of course we have conversations across many of our jurisdictions, both with datacenter developers but also with the tech companies that sit behind. And I think it really is a challenging domain and it's really about pace. And I think what's exciting about this investment that we're making, it's really through the dual and vehicle finding a way to crack that equation. It's about speed, but it's also about doing speed speed at scale. And I think that's what's most exciting and that's the unlock, I would say, around underpinning those that are real projects that really want to put money behind investing versus those that perhaps are more speculative and seeing what might pan out.
- [04:54]
Interviewer Danny
How do you deal with the politics of the situation? So I was just looking. There is even a lawsuit this morning around AI very, very different from energy and what you're doing, but specifically around Albertsons and Wal Mart using algorithms to determine the the price of gasoline at their pumps. I mean there is this real backlash occurring in the United States right now about this fear AI is going to be driving up my utility bills. How do you Navigate that environment, especially ahead of the midterms when politicians are taking note.
- [05:25]
Zoe Yunovich
Yeah. And the first thing I would say when it comes to specifically building projects is that we must do so in a way that's really deeply respectful for the communities that we find ourselves operating in. And that's the way we've always gone about our projects. There's a lot of opportunity for community consultation to get input from the local communities and to make sure that we're welcome in the jurisdictions that we're building in. I think that broader debate is something that of course will play out over the course of time, but we're really focusing on the things that we can control where we have unique capabilities that we can bring to the story. And that's really about creating that, that affordable power that's reliable in the current context.
- [06:04]
Interviewer Danny
I understand the desire to only focus on things you can control, but when you can't control them, isn't that a real risk for the build out?
- [06:12]
Zoe Yunovich
Well, I think there's the potential that these things could play out at different rates than perhaps might be anticipated. But I can tell you from our own five year forecast, we have solidified plans around our investment in that sort of 90 to 95 billion USD which is underpinned in our jurisdictions for regulatory rate cases that affirm. And so I think we can speak with confidence in the next five years exactly what projects we will be delivering and by when. When we come to this particular announcement today, we've also got a firm PPA in place. This is something that's been signed by Microsoft for the Kilby project. And so this isn't sort of a speculative investment. This is really underpinned by the fundamentals around customers and actually meeting that demand with the right infrastructure and energy players.
- [07:00]
Interviewer Danny
Zoe, just quickly, because you know, you mentioned you have commitments. What do you make of those more speculative projects? There have been quite a few of, you know, some politician leases some land, doesn't have a hyperscaler committed to it yet, but hopes that they will. I mean, do you think that those will find the right path and find the right commitments, or do you think that there may be some speculation that concerns you in the overall market right now?
- [07:21]
Zoe Yunovich
Well, I can really speak from the jurisdictions that we're most familiar with and I think we see that there's a project maturity that evolves over time. So inevitably there's a lot of in the queue. We find that narrows quite quickly when you start to get into establishing contracts around capacity that people will take and that very quickly sort of starts to simplify those that are more speculative versus those that ultimately are putting money in the ground. And so I think in our jurisdictions, we actually have a pipeline that's substantially larger. But the projects that we're actually doing, designing and construction around are firm projects. They've got real money behind them. And we work very closely with the integration of how the projects are being built and how those connections into the grids might take place.
- [08:05]
Interviewer Danny
Zoe, this has been really interesting. Thank you so much for joining us. That's the National Grid ceremony. Thanks for having us. Zoe Yunovic the thing about AI for
- [08:12]
IBM Representative
business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across hr, IT and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business.
- [08:40]
Venture Global Representative
IBM never bet against American Grit or American Energy through innovation. Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.