# The case for colocating data centers and generation

- Show: [Catalyst](https://hardwarepodcasts.com/podcast/catalyst)
- Published: 2025-02-13
- Length: 44m
- Page: https://hardwarepodcasts.com/podcast/catalyst/2025-02-13-the-case-for-colocating-data-centers-and-generation

## Summary

Sheldon Kimber, founder and CEO of Intersect Power, explains how colocation of behind-the-meter solar, wind, and storage with data centers bypasses grid interconnection delays and capacity constraints. He details Intersect’s $800 million partnership with Google and TPG, noting that this model allows for faster time-to-power and cleaner operation than traditional grid-tied solutions. Kimber argues that while grid connections remain optional for insurance, the primary value lies in speed and scale, enabling multi-gigawatt sites in regions like the Texas Panhandle to come online by 2026-2028. He also dismisses concerns that AI efficiency gains (like DeepSeek) will reduce overall power demand, citing Jevons Paradox and the recursive nature of AI inference.

## Chapters

- [0:31](https://hardwarepodcasts.com/podcast/catalyst/2025-02-13-the-case-for-colocating-data-centers-and-generation#t=31) Introduction: The Grid and Data Center Demand
- [6:09](https://hardwarepodcasts.com/podcast/catalyst/2025-02-13-the-case-for-colocating-data-centers-and-generation#t=369) State of the Solar and Storage Market
- [15:52](https://hardwarepodcasts.com/podcast/catalyst/2025-02-13-the-case-for-colocating-data-centers-and-generation#t=952) The Case for Colocation with Data Centers
- [23:00](https://hardwarepodcasts.com/podcast/catalyst/2025-02-13-the-case-for-colocating-data-centers-and-generation#t=1380) Grid-Connected vs. Off-Grid Operations
- [27:47](https://hardwarepodcasts.com/podcast/catalyst/2025-02-13-the-case-for-colocating-data-centers-and-generation#t=1667) Flexible Load and Capacity Factors
- [29:48](https://hardwarepodcasts.com/podcast/catalyst/2025-02-13-the-case-for-colocating-data-centers-and-generation#t=1788) Time to Power and Project Timelines
- [33:06](https://hardwarepodcasts.com/podcast/catalyst/2025-02-13-the-case-for-colocating-data-centers-and-generation#t=1986) Crypto, Hydrogen, and Prescience
- [36:24](https://hardwarepodcasts.com/podcast/catalyst/2025-02-13-the-case-for-colocating-data-centers-and-generation#t=2184) DeepSeek, AI Efficiency, and Load Growth

## Topics

- [Energy & climate tech](https://hardwarepodcasts.com/topic/energy-and-climate-tech)
- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [AI & machine learning](https://hardwarepodcasts.com/topic/ai-and-machine-learning)

## Most relevant to

companies scaling up

## Mentioned

- Intersect Power (company)
- Google (company)
- TPG (company)
- EnergyHub (company)
- DeepSeek (other)
- Crusoe (company)

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- [Decentralizing the Energy Grid | Evergen's Nick McGrath | Internet of Things Podcast](https://hardwarepodcasts.com/podcast/iot-for-all-podcast/2022-11-15-decentralizing-the-energy-grid-evergens-nick-mcgrath-internet-of-things-podcast) (IoT For All Podcast)
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- [Ep 160: More good News for Intel, AI Model Trends, Future of Datacenter](https://hardwarepodcasts.com/podcast/the-circuit/2026-04-13-ep-160-more-good-news-for-intel-ai-model-trends-future-of-datacenter) (The Circuit)

## Citing this page

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