Podcast Summary: "Who Controls Power in the AI Era?"

Podcast: Open Circuit
Host: Latitude Media
Episode Date: January 9, 2026

Overview

This episode of Open Circuit marks a major turning point for both the show and the energy sector. The main theme is the seismic transformation underway in the power industry, driven by explosive AI-related electricity demand, tech company influence, and rapid changes in energy infrastructure and markets. The discussion focuses on who wields power and control in this new era — examining corporate strategies, market shifts, technology breakthroughs (especially around storage and flexibility), and regulatory challenges. Special emphasis is placed on the implications of tech giants (hyperscalers) like Google, the impact of landmark deals, and the evolving role of storage and flexibility in the grid.

Key Sections & Discussion Points

1. New Era, New Voices, and Big Themes (00:35–06:47)

• Show's Evolution & Context

  • The podcast is debuting a new format and a video presence, reflecting a media landscape and energy market in flux.
  • Introduction of new co-host Caroline Golan (CEO, Envision Energy Advisors; former Global Head of Energy Market Development at Google).
  • Acknowledgment of past co-host Katherine Hamilton’s retirement.

• Current Energy Challenges

  • Historic load growth, rising prices, grid bottlenecks, market strain from tech-sector demand, political turbulence, and new development models dominate the landscape.
  • At a global level: the rise of the “electrostate,” peak oil demand, unstable trade, and an AI race as geopolitical contest.

• Quote

  “The grid has become the central bottleneck for economic growth and the capital markets are trying to figure it all out. And that's why this show is changing too ... Understanding how the energy transition actually works in the real world. Who controls it, who pays for it, and how fast it can actually be built.” – Stephen Lacy (05:45)

2. Caroline Golan’s Path: Google’s Energy Journey (07:00–11:22)

• Reflection on Google’s Evolution (07:26–11:22)

  • Caroline describes how Google’s energy team evolved from a “bunch of us sort of sitting in a room” to setting market standards.
  • Transitioned from pursuing sustainability goals to grappling with being a central, market-shaping player, responsible for the backbone of Google’s corporate agenda.
  • The shift required newfound caution and responsibility given Google’s immense influence on energy markets.

• Memorable Quote

  "Within three to four years, we realized we were the market, we were setting the market ... The game changed. We as an industry became much more important..." – Caroline Golan (08:43)

3. Shifting Energy Paradigms: Major Storylines (11:23–32:14)

A. Rewriting the Rules: The Talon Deal and Capacity Wars

• (11:45–20:42)

  • The Talon deal (Amazon’s attempt to take nuclear plant capacity off the PJM market) upended assumptions about grid-interconnectedness vs. co-location and off-grid “behind the meter” loads.
  • Tech companies moved from using excess grid capacity to now facing capacity scarcity, forcing a rethink of their role and responsibility in maintaining system adequacy.

• Notable Exchanges:

  • Jigar Shah: “What the data center companies have done since 2012 is steal capacity from the rest of the public ... As soon as Talon happened, you were by definition taking 1,000 megawatts of capacity out of the PJM market.” (14:06)
  • Caroline Golan: “Our energy teams ... never had to deal with this concept of there not being capacity. It was just a matter of can we offset that capacity with clean energy... The Talon deal forced the entire industry to question what responsibility do hyperscalers ... have to maintaining the health of capacity markets.” (18:54 & 20:42)

B. Flexibility Frontier: Data Centers as Grid Citizens

• (20:51–29:15)

  • Data center operators explored load flexibility to balance grid needs, starting with carbon-aware computing and manual demand response.
  • There’s tension between the theoretical potential for large, flexible data centers and the reality that market signals (incentives) and technical/contractual structures are lacking.

• Quote

  “I did not expect the fervor that we started to see around data centers being flexible ... The degree to which we are thinking that 1, 2, in some case 3 gigawatt campuses should be flexing up or down ... the jury's still out for me on that one.” – Caroline Golan (23:39)

  • Jigar highlights regulatory, contractual, and market barriers: “You have gigawatts and gigawatts of solar projects in North Carolina ... whether Amazon or Google ... could just pay them for the BYOC, right? That has to be approved by Duke. Right. And so ... we're in this weird spot...” (26:47–28:43)

C. Storage Dilemma: Looking for a Breakthrough

• (29:11–33:06)

  • Integration of storage is now THE storyline. It’s needed for grid resilience, firming renewables, enabling flexibility, and transmission alternatives — but no contract/market structures allow for treating storage’s multi-role value holistically.
  • Utilities and project developers need new approaches, not siloed “storage for xyz” contracts.

• Quote

  “We haven't seen the breakthrough in storage from a technology perspective ... Once that hits, this whole game is incredibly different ... But there isn't a single contract out there where you can do all of that at once and ... until those types of structures exist, we're going to be running after these problems.” – Caroline Golan (29:15–30:49)

4. Investment, Market Structure, and the “Control Problem” (33:53–38:18)

• Market Content and Educational Gaps

  • Much of the high-level AI/energy conversation misses basic realities of physical infrastructure and market mechanics. Those making enormous decisions (in tech, finance) often lack deep understanding of utility operations, capacity vs. energy, and contract details.
  • The hosts aim to bridge this gap with practical, physics-and-contracts-driven discussion.

• Quote

  "None of those people actually understand physical infrastructure or electricity ... it's shocking to me how uninformed everybody is, right? ... I'm hopeful that we can actually break through and ... talk about this in a way that's not just policy driven, but actually physics driven..." – Jigar Shah (34:28–36:44)

• Utilities as “Option Value”

  • Jigar notes the enormous, underappreciated asset value in regulated utilities — suggesting a national utility could be formed from private capital due to current leadership gaps. (37:40)

5. Power Plays: The Alphabet/Google Acquisition of Intersect Power (38:18–54:34)

• Deal Context

  • Alphabet’s acquisition of Intersect Power (major solar+storage developer; $4.75B) is unpacked. The move indicates Google’s pivot to deeper vertical integration in power supply, giving it more direct control over siting, permitting, and serving massive data center loads.

• Strategic Drivers

  • The main reason is not financial returns, but lowering operational costs, boosting speed to market, and securing “option value” (flexible power supply for future needs in volatile markets).
  • Intersect’s model of “naked” merchant projects and flexibility allows for superior optionality — a rarity among large project developers bound by conventional PPAs.

• Quotes

  "There is no way to procure the option on power in this country unless you own it. And if you can't procure an option on power, then you have to figure out a way to move that power ... And that's why I think the acquisition makes sense." – Caroline Golan (41:34–42:32)

  "Sheldon was the first person who basically said, we are giving this power away for free. We should not be selling this power under these PPAs with Google or Microsoft or whatever, right? ... We bet on that ... this power's worth 7 cents a kilowatt hour. Why are you giving it away for three?" – Jigar Shah (42:58–45:24)

• Sectoral Shifts

  • Reliance on merchant (non-contracted) renewables is a game-changer, increasingly outpacing fossil projects due to market structures and investment dynamics.
  • Intersect’s “colocation”/energy park model is only fully viable in deregulated markets like Texas (ERCOT); significant regulatory challenges remain elsewhere.

6. Competitive Dynamics and Shifting Alliances (52:43–54:34)

• The hyperscaler sector has shifted from cooperative climate/market coalitions to open competition for power as core competitive advantage.

• Alignment among big tech, NGOs, and utilities is breaking down as supply security becomes existential.

• Caroline:

  “Now this is a competitive advantage in a way that it never has been before. And that changes the role of these NGOs ... the past two years has been a bit bloody.” (54:02)

7. The Forecast: Trends and Predictions for 2026 (54:44–64:35)

Jigar Shah (54:44–56:25)

• AI/machine learning will drive down costs of delivering clean energy by eliminating much of the financial and EPC (engineering, procurement, construction) overhead.
• Vertical integration enabled by tech giants (as with Google/Intersect) will further reduce costs.

Caroline Golan (56:44–58:31)

• The oil & gas industry is currently outpacing clean energy in practical AI deployment.
• The top bottleneck now is trained workforce — especially electricians and line workers needed to scale gigawatt-level deployments. Every developer faces this constraint.

Stephen Lacy (59:43–62:19)

• US automakers are at a pivotal moment: facing slow EV adoption, growing competition, underutilized battery manufacturing, and a market shifting to stationary storage for grid/data centers.
• Prediction: Skilled trades (electricians, plumbers) will be prestige careers in the near future due to shortage and economic opportunity.

Bonus (63:44)

• Jigar: Forecasts use of advanced AI tools will cut construction cost by $0.23/watt.
• Caroline: Predicts at least 5–6 states will legislate AI use for system optimization in utilities/operators.

Notable Quotes & Moments

• Caroline Golan on Google’s evolution:

  "We went from being an entity that wasn't afraid to say anything to an entity that had to be incredibly mindful of every single thing we said." (09:54)

• Jigar Shah on power sector knowledge gaps:

  "... it's shocking to me how uninformed everybody is, right? ... I'm hopeful that we can actually break through and ... talk about this in a way that's not just policy driven, but actually physics driven..." (35:39)

• Jigar predicting industry overhaul:

  "Every single major developer of clean energy are going to use these advanced AI tools to reduce the cost of construction by 23 cents a watt." (63:33)

• Stephen Lacy, on the skilled trade opportunity:

  “…Skilled electricians and plumbers, etc., will be the prestige careers in the near future. I really, really believe that.” (59:24)

Timestamps for Key Segments

• Show context & new host intro: 00:35–06:47
• Caroline on Google’s energy role: 07:26–11:22
• Major forcing functions/storylines: 11:23–32:14
  • Talon deal/capacity: 11:45–20:42
  • Flexibility: 20:51–29:15
  • Storage: 29:11–33:06
• Market failures & education gaps: 33:53–38:18
• Google–Intersect Power acquisition breakdown: 38:18–54:34
  • Structures, motives, market implications: 41:34–48:50
  • Regulatory/colocation model: 48:28–52:43
• Competitive dynamics in hyperscaler sector: 52:43–54:34
• The forecast (predictions/trends): 54:44–64:35

Tone and Language

The tone is candid, insightful, and often irreverently humorous, especially in exchanges between Jigar and Caroline. There is a strong sense of urgency, coupled with curiosity and willingness to challenge established paradigms (“the box”). Technical terms are explained for a sophisticated industry audience, but the hosts emphasize practical implications and actionable insights throughout.

Conclusion

This episode kicks off a pivotal year in energy transition with an unvarnished look at how AI, hyperscaler demand, grid constraints, and new business models are redefining “who controls power.” It underscores the value of literacy around real infrastructure, regulatory nuances, and market innovation. It also previewed the kinds of sharp, practical debate and analysis the revised Open Circuit podcast intends to provide through 2026 and beyond.