The rapid expansion of artificial intelligence is creating unprecedented demand for electricity, prompting major technology companies to pursue new energy strategies, including nuclear power development and dedicated data center generation capacity. An upcoming Broadband Breakfast webinar, AI, Nuclear Power and Data Centers (Feb. 18 at Noon ET / 11 a.m. CT), will explore how hyperscale technology firms are reshaping energy markets and investment dynamics in infrastructure. Recent developments include Microsoft’s agreement to restart the Three Mile Island nuclear facility, Google’s partnerships with small modular reactor developers, and Amazon’s investments in nuclear technologies to support future AI infrastructure.

Because AI platforms such as ChatGPT, Claude, and Gemini require significantly more computing power than traditional cloud services, utilities and grid operators are raising concerns about electricity supply constraints. In some regions, power shortages have already led to moratoriums on new data center connections, highlighting the scale of the challenge.

For institutional investors, these developments extend well beyond the technology sector.

Investment and Economic Implications

The intersection of AI growth, energy infrastructure, and grid capacity has potential implications across multiple asset classes:

• Energy and utility sector investments
• Private infrastructure and digital infrastructure funds
• Power generation and transmission projects
• Regional economic development and municipal finance
• Long-term inflation and economic growth assumptions

As data center expansion accelerates, nuclear energy is increasingly being discussed as a potential solution due to its reliability and carbon-free generation profile. However, significant regulatory, capital cost, and timeline risks remain.

Why This Matters for Public Pension Funds

Many public pension portfolios already have exposure to utilities, infrastructure, private markets, and energy assets. The emerging link between AI development and energy demand could influence long-term return opportunities, risk assessments, and portfolio diversification strategies.

For Texas-based systems, the topic is particularly relevant given the state’s growing role in data center development and ongoing discussions about grid reliability and energy investment.

Understanding how technology innovation intersects with energy markets and infrastructure investment may help trustees and investment staff evaluate both emerging opportunities and potential risks within their portfolios.

Event Details and Registration

The Broadband Breakfast panel will feature energy economists, grid experts, and policy specialists discussing whether nuclear power can realistically meet AI-driven energy demand and what the implications may be for infrastructure investment and energy markets.

Feb. 18, 2026
Noon ET / 11 a.m. CT

Panelists include:

• Frank Wolak, Stanford University
• Steve Haro, Haro Solutions
• Rob Gramlich, Grid Strategies LLC
• Drew Clark, Broadband Breakfast (moderator)

Register or learn more: https://chat.broadbandbreakfast.com/c/broadbandlive-events/ai-nuclear-power-and-data-centers?ref=broadbandbreakfast.com

About the Author: Allen Jones serves as TEXPERS' Director of Communications and Event Marketing. He brings more than two decades of experience in journalism and publication management and now guides the Association's strategic communications. [email protected]