Jon Parrella

At the same time, they're buying the assets and almost removing them from the grid as part of the bid stack of what determines what the price of power would be.

Now, think forward a minute, and I know everybody's looking at it saying they're raising the price of power.

Look, the SB6 in Texas, Senate Bill 6 in Texas, forces the data centers to pay for all their own interconnect and all their own equipment.

So they're not passing that along to the rate payers everywhere.

Well, and to be interruptible.

And listen, that's where I was going.

Now, if you look at

architecting grids, and Jigar and I had this conversation literally two days ago.

I personally believe that regulatory needs to come in and say, if you want to build big, you have to be a grid asset and you have to be a responsive load rather than just a potentially controllable load.

Let me explain the difference between the two.

Controllable is something where the grid can come and say,

With 30 minutes notice, I need you to turn off for up to 12 hours.

That's Senate Bill 6 in Texas.

And what that means is that during emergency periods, they would make the data center shut down.

Well, there are 13 times in the last five years that might have happened, okay?

A controllable load means that you can set up the grid to use the frequency of the grid to control the data center or like a demand response program, if you will.

So when the grid really needs it, the data center can control the load.

Now, in many situations, for those that built behind the meter generation, if their electrical power infrastructure is set up correctly, it can enable them to actually inject power back into the grid from the generation assets that they have.

So now, all of a sudden, all these data centers are building out all this power, and all the grids are building out all the infrastructure to connect them to the grid eventually.

And now what you're going to do is you're going to see this huge revolution where there's more generation capacity available when needed that balances the grid.