Know More. Risk Better. Podcast | S9E21 Utilities: The Great Data Center Overbuild

Описание: [Please note, this podcast was recorded on Tuesday, 2 December 2025 at 11:30AM ET]

Welcome to the CreditSights Podcast!

This episode of the Know More Risk Better podcast explores data center power demand, utility infrastructure buildout, and whether massive capacity additions signal an overbuild—or justified growth. In this utilities and power deep dive, Host Zachary Griffiths (Head of US Investment Grade and Macro Strategy at CreditSights) is joined by Andy DeVries (Head of Utilities and Power and Head of Investment Grade at CreditSights) to discuss key trends including the Edison Electric Institute (EEI) conference takeaways, the math behind data center overbuild (utilities committing ~100 gigawatts vs. ~50 gigawatts needed through 2030), rate payer protections against early data center shutdowns, counterparty risk from off-balance sheet structures (Meta's $30 billion Hyperion campus with Blue Owl), independent power producer opportunities (Vistra, Constellation, NRG), and potential Trump administration intervention in PJM capacity markets. The team addresses AI efficiency gains from DeepSeek, Sam Altman's response to OpenAI's economics questions, CoreWeave's credit market disconnect, ASIC chips versus GPU power consumption, utility credit quality outlook, and what would need to happen for data center risks to impact broader utility creditworthiness. This session offers valuable insights for anyone tracking utility credits, power infrastructure, data center development, and AI-driven energy demand.

Speakers
· Zachary Griffiths, CFA, Head of US Investment Grade & Macro Strategy, CreditSights:
Zachary leads US investment grade and macro strategy, applying credit market expertise to major transactions.
· Andy DeVries, CFA, Head of Utilities & Power and Head of Investment Grade, CreditSights:
Andy leads utilities & power and investment grade coverage, applying sector expertise to electric utilities and data center infrastructure.

Timestamps
00:00 – Introduction
01:25 – EEI Conference Highlights
04:15 – Data Center Overbuild Math
10:01 – Rate Payer Protection Mechanisms
16:52 – Counterparty Risk: SPV Structures
22:37 – CoreWeave Market Disconnect
24:32 – AI Efficiency & Power
28:32 – IPP Investment Opportunities
31:56 – Trump PJM Market Intervention
35:17 – Conclusion & Key Takeaways

Connect with CreditSights
· Website: https://know.creditsights.com/
· LinkedIn:   / creditsights