The Meb Faber Show · Monday, August 31, 2026
Paul Kedrosky highlights that the immense scale and energy demands of AI, particularly from data centers often powered by behind-the-meter natural gas turbines, create environmental consequences that AI itself will need to solve.
“And the one that specifically triggered that comment was because the scale is growing so quickly and the intersection between the grid can't keep up, people are increasingly being applauded for bringing their own beer, bringing your own power, adding natural gas turbines behind the meter, and that of course has consequences in terms of specificity and energy and emissions.”
“And I it's kind of hilarious because one of the greatest contributors at the margin right now is this prodigious addition of behind the meter power, usually in the guise of natural gas powering all of these new data centers.”