JPMorgan Executive Highlights Power Sourcing as Key Factor in Funding AI Projects
Kevin Foley, co-head of Global Investment Banking at JPMorgan, emphasized on CNBC’s 'Squawk Box' the importance of power sourcing for securing funding in AI infrastructure projects. While capital remains abundant, investors are increasingly focused on a project's economic viability rather than its potential alone. Power availability and permits have emerged as critical factors that determine whether an AI data center gets financed. Foley noted that despite rising scrutiny, there is no sign of reduced interest from capital markets in funding AI projects. However, the competition for high-quality ventures has led to higher financing costs due to increased demand for limited viable opportunities. JPMorgan's Q2 2026 earnings data shows global AI-specific capital expenditure growing significantly—from $400 billion last year to over $700 billion this year—with projections exceeding $1 trillion in 2027. The International Energy Agency (IEA) forecasts a sharp rise in electricity demand from data centers, reaching more than 1,000 terawatt-hours by 2030. GE Vernova plays a pivotal role as it supplies about 25% of the world’s power equipment, positioning it at the center of addressing this growing energy challenge.
