At the latest DCD>Connect New York, Rick Drescher of Denham Capital Management shared how Gray Oak Power is accelerating power delivery for the digital age. The key takeaway was clear: engage an energy partner early, waiting creates risks that developers can’t afford. As Rick noted, to succeed in today’s market, you don’t just need a data center developer; you need a turnkey energy partner.

Watch the full interview Denham Capital & Gray Oak Power: Rethinking Power for Data Center Growth

Building Data Center Power Solutions Faster

Gray Oak Power isn’t looking to replace the grid; they are looking to augment it. With a portfolio of over 10 gigawatts of active projects across the U.S., the focus is on removing friction from the power delivery process.

• Speed to Delivery: In an era where 2.5 years is considered fast, Gray Oak focuses on hitting the finish line before the traditional utility can.
• Strategic Location: Prioritizing energy-constrained markets where policy and regulatory environments favor rapid data center growth.
• Turnkey Solutions: Moving beyond point solutions to offer full engineering, financing, and operations of energy assets.

There is No Silver Bullet To Power Solutions

One of the most critical takeaways from the Gray Oak Power team is that you don’t understand data centers unless you understand the workload. Different workloads require different power profiles:

• Firm Baseload Capacity: Pick a location where the power grid is expanding for a future path for connection.
• The Hybrid Model: Utilizing reciprocating engines for immediate 100MW requirements while layering in phase two and three solutions like combined-cycle gas or grid interconnection.
• Risk Tolerance: Balancing the needs of investors with the uptime commitments made to end users.

Advice to Data Center Developers

The days of having a single path to power are over. To hit commitments in 2026 and beyond, data center operators must engage an energy development partner early in the process, not as a reactionary measure.

Why Early Engagement Matters:

1. Transparency: Understanding the real risks of a site before the first shovel hits the ground.
2. Redundancy: Developing a Plan A, B, and C so that when the racks arrive, the lights actually turn on.  Plan A alone isn’t enough anymore.
3. End-User Confidence: Ensuring that the promises made to AI providers are backed by a seasoned energy team is the best advantage.

Frequently Asked Questions

What does an energy development partner do?

Unlike a data center developer, an energy partner like Gray Oak Power focuses specifically on the generation, engineering, and financing of the power assets needed to run the facility, often bringing power online faster than the local grid.

Why is “Firm Baseload” capacity so important right now?

As AI workloads increase in density and importance, they require constant, high-scale power. Hybrid solutions combining quick-start engines with long-term grid or gas solutions, ensure the data center stays operational regardless of grid constraints.