In a recent LinkedIn post, Kevin O’Leary discusses the fundamental, often overlooked, requirement for the expansion of both cryptocurrency and artificial intelligence: power. The prominent investor and businessman argues that without sufficient and accessible power, many ambitious data center projects will fail to materialize.
O’Leary directly addresses the surge in data center announcements, many of which were made 18 to 24 months ago. He points out a critical flaw in the planning of these ventures: the assumption that connecting to local power grids would be a simple process.
“Half the data center announcements that you’ve heard of are never gonna get built. You heard it here first.”
According to O’Leary, the reality is far more complex. He asserts that many existing power grids simply do not have the capacity to support these new, power-hungry facilities. This lack of available power, he contends, is a significant roadblock.
The Gridlock of Power Availability
Kevin O’Leary highlights that the optimistic projections for new data centers were based on an outdated understanding of energy infrastructure. The assumption that power would be readily available has proven to be a major miscalculation.
“They were all announced eighteen to twenty-four months ago, and they made the assumption that they were just gonna call up their local power authority and just attach to the grid. There’s no power left on the grid.”
As O’Leary notes, this power constraint means that companies that have announced plans for new data centers, particularly those relying on existing grid infrastructure, are likely to face significant hurdles. He predicts that many of these projects will be rejected due to power limitations.
The Opportunity in Power Scarcity
While painting a challenging picture for many announced projects, O’Leary also identifies a potential opportunity arising from this power scarcity. He suggests that companies with the foresight to secure power contracts at competitive rates will be well-positioned to capitalize on the situation.
“So all of these guys that announced these data centers attached to the grid are gonna get told sorry, it’s not possible. And all those turbines are going to come onto the markets, and companies like BITZERO are gonna get them ’cause they have the contracts for sub six cents.”
In O’Leary’s view, the race for power is paramount. He emphasizes that for both the burgeoning fields of AI and the evolving cryptocurrency landscape, securing a reliable and cost-effective power source is not just an advantage, but a prerequisite for success. The ability to secure power at a low cost, as exemplified by companies like BITZERO, will be a key differentiator in the coming years, according to O’Leary’s analysis.
📝 About This Content
This article is based on insights shared by Kevin O'Leary on LinkedIn.
📅 Originally posted on February 5, 2026 | View original post on LinkedIn →