The race to scale artificial intelligence (AI) has become one of the defining pursuits of modern enterprise leadership. Organizations are investing heavily in models, data, and digital infrastructure in pursuit of competitive advantage. Yet beneath this visible layer of innovation lies a quieter, more consequential constraint—one that is rarely discussed in strategy rooms but is increasingly shaping outcomes: energy. As highlighted during Avasant’s Empowering Beyond Summit, the trajectory of AI is no longer governed solely by breakthroughs in algorithms. It is increasingly determined by the physical infrastructure required to power it. For executives, this represents an inflection point: the ability to scale AI is not just a function of capital allocation toward technology, but of access to reliable, scalable, and strategically aligned energy sources.
At the center of this reframing was Carl Fisher, Chief Operating Officer of NuScale Power, whose keynote set the tone for the summit’s broader theme of future-proofing. His message was both direct and transformative. “There’s a nexus between nuclear… and AI,” he noted early on, drawing a clear line between digital ambition and physical capability. Leaders, he emphasized, can no longer treat energy as a background utility. The ability to scale AI, sustain growth, and remain resilient will depend just as much on energy strategy as on technology innovation. For executive teams, this requires a structural shift in thinking: energy sourcing must now be evaluated alongside cloud strategy, data architecture, and investment roadmaps, rather than being handled as a downstream operational consideration.
Fisher’s keynote began by grounding the conversation in a stark reality. Global energy systems are already under tremendous pressure, with significant portions of the world still lacking reliable access to electricity. Even before incremental demand is introduced, the system is stretched.
Into this constrained environment enters AI— “extremely energy hungry,” as Fisher described—and accelerating demand at a pace the energy sector has not historically experienced. Data center expansion provides the most visible manifestation of this shift, with U.S. demand expected to grow from roughly 25 gigawatts to over 80 gigawatts by 2030. This surge is not incremental; it reflects a fundamental re-baselining of energy demand driven by AI workloads. For executives, this introduces a new strategic risk: growth assumptions tied to AI may be fundamentally misaligned with the realities of power availability.
Compounding the challenge is the simultaneous retirement of traditional baseload generation. As coal and other legacy sources are phased out, capacity is being removed from the system at precisely the moment demand is accelerating. The result is a widening gap between supply and demand, creating what is effectively a structural collision within the energy ecosystem. For leadership teams, this is not an abstract macroeconomic factor—it directly affects site selection decisions, operating costs, expansion timelines, and the feasibility of scaling digital infrastructure at pace.
One of Fisher’s most critical insights is that AI fundamentally changes expectations for energy reliability. “AI cannot withstand or tolerate disruptions… they need 24/7, 365 energy,” he emphasized. This requirement transforms reliability from a technical performance metric into a strategic imperative that sits squarely within the executive agenda.
AI-driven data centers are not simply large consumers of energy—they are continuous consumers. Their performance, output, and economic value are directly tied to uninterrupted operations. In this context, even minor power instability can cascade into material business impact, affecting model training cycles, inference availability, and customer-facing services. For executives, this means that energy sourcing decisions must be evaluated through the lens of operational resilience and business continuity, not just cost efficiency.
Fisher framed this shift clearly, noting that AI infrastructure is “pushing like we’ve never seen before” in terms of the demand for continuous power. As a result, leading organizations—particularly hyperscalers—are already prioritizing access to reliable energy alongside commitments to carbon-free power. This signals a broader transition in enterprise strategy, where energy reliability becomes a foundational enabler of innovation rather than a supporting function. Leaders who fail to internalize this shift risk building AI strategies on infrastructure that cannot sustain them.
Despite the growing urgency, existing energy models struggle to meet these new requirements. Renewable sources such as solar and wind are essential to decarbonization efforts, yet they introduce variability that is inherently misaligned with AI’s demand for continuous uptime. As Fisher noted, these sources cannot guarantee availability because “the wind doesn’t always blow, and the sun doesn’t always shine.”
At the same time, traditional approaches to expanding energy capacity face structural constraints. Building large-scale power infrastructure is complex, time-intensive, and capital-heavy. Permitting processes, regulatory hurdles, and grid limitations extend timelines in ways that are incompatible with the rapid pace of AI-driven demand. Executives can no longer assume that energy supply will scale in parallel with digital ambition.
The emerging reality is that organizations must move beyond single-source thinking and toward more deliberate energy sourcing strategies. This includes evaluating reliability, scalability, cost, and sustainability, while aligning energy decisions with long-term business objectives. In practice, this represents a shift from procurement to architecture—where energy is designed as part of the broader infrastructure ecosystem supporting growth.
It is within this context that Fisher introduced small modular reactors (SMRs) as a pathway forward. Their relevance lies not only in their technical characteristics, but in how they address the structural constraints facing traditional energy systems. As COO of NuScale Power, the leader in SMR technology, Fisher is well-versed in what sets SMRs apart.
SMRs are designed to deliver “firm, always-on” power while enabling incremental expansion. Rather than committing to large, monolithic capacity builds, organizations can scale energy supply in phases, aligning investment more closely with demand growth. This modularity mirrors how enterprises deploy digital infrastructure, creating a more synchronized approach to scaling both compute and power.
Equally important is the deployment model. SMRs are “factory built… not fabricated on site,” allowing for more predictable timelines and reduced construction risk. For executives, this introduces a fundamentally different risk profile compared to traditional energy investments. The combination of scalability, reliability, and deployment flexibility positions modular energy as a strategic enabler of AI expansion, particularly for organizations seeking to balance speed, resilience, and sustainability commitments.
While SMRs are one example, the broader lesson is clear: future-ready energy strategies will need to prioritize modularity, predictability, and alignment with enterprise growth patterns.
The implications of this transformation are significant. As Fisher stated succinctly, “AI strategy is now an energy strategy.” This is not simply a reframing—it is a redefinition of how organizations must think about growth, risk, and competitive differentiation.
Infrastructure, rather than algorithms, is increasingly becoming the limiting factor. Power sourcing becomes a strategic decision that influences where organizations invest, how quickly they can scale, and how resilient their operations will be under stress. For executives, this requires elevating energy discussions to the same level as digital transformation initiatives and embedding energy considerations into long-term planning cycles.
Fisher also emphasized the importance of cross-sector collaboration with multiple stakeholders. Addressing these challenges will require coordinated efforts between technology providers, utilities, governments, and industrial players. At the same time, resilience is emerging as a defining capability. Grid instability, climate pressures, and external disruptions are already impacting energy systems, reinforcing the need for strategies that prioritize continuity as much as efficiency.
The theme of Avasant’s Empowering Beyond Summit—future-proofing—takes on deeper significance through this lens. It is no longer sufficient to innovate at the application or platform level alone. Leaders must consider the full ecosystem that enables innovation to scale, with energy at its core.
As Fisher’s keynote made clear, “infrastructure… will become the limiting factor.” The organizations that succeed will be those that recognize this early and proactively align their energy sourcing strategies with their AI ambitions. In this environment, energy isa competitive differentiator.
The challenge ahead, as Fisher concluded, is both simple and profound: “Let’s change the power that changes the world.”
Watch the full presentation that inspired this article.
By Tarah Lachmandas, Avasant & Carl Fischer, NuScale
Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.
Login to get free content each month and build your personal library at Avasant.com
