Published on March 11, 2026
In some ways the current AI arms race and digital infrastructure revolution are both a sprint and a marathon, according to recent analysis from The Texas Lawbook: “AI Arms Race, Digital Infrastructure Revolution, Middle Market Producing M&A Super Cycle.”
As the demand for hyperscale data centers intensifies, Texas is emerging as a critical leader in the global “super cycle.”
“Texas is well-positioned in many regards for the digital revolution. Not only does the state have the oil and gas to generate the necessary power, but it also has a sturdy renewables infrastructure in place, a key stability factor for data center developers who increasingly hedge traditional sources of electricity with alternatives in their strategic planning.”
James Garrett, global vice chair of the M&A and Private Equity at Latham & Watkins, recently advised Denham Capital on a new partnership with Gray Oak Power, focusing on customized power sourcing for data centers.
“[Gray Oak] is designed to be a specialized service that will help its clients overcome multi-grid connection delays and supply chain obstacles to timely power supply deployment ….”
Garrett expects the current “super cycle” in the data center industry to continue through at least 2030 as demand for AI and the race to be a first mover shows no signs of slowing down.
At Gray Oak Power, we are proud to be at the forefront of this evolution, helping our partners navigate supply chain obstacles and deploy reliable, customized power solutions to fuel the next generation of AI.
Read the full article here (subscription required): Texas Lawbook
