JPMorgan Executive Highlights Power as Key Factor in AI Project Funding
Kevin Foley, co-head of Global Investment Banking at JPMorgan Chase (JPM), emphasized the importance of power sourcing and permits for securing funding in artificial intelligence projects. Speaking on CNBC's 'Squawk Box,' Foley noted that while capital remains available, investors are increasingly focused on a project’s ability to operate economically rather than its potential alone. Foley dismissed concerns about reduced AI infrastructure investment, stating there is no sign of financing slowdowns but acknowledged rising scrutiny and higher costs due to limited high-quality projects. He highlighted the growing scale of global AI capital expenditure—projected to exceed $1 trillion in 2027—as a driver for more rigorous evaluation. The need for reliable electricity supply has become critical, especially as data centers are expected to consume up to 3% of global electricity by 2030. GE Vernova (GEV), which supplies about 25% of the world's power equipment, is positioned at a key bottleneck in this transition.
