ASG: power now shapes digital infrastructure strategies

Solmar Insights

Surging demand from AI and cloud computing has propelled digital infrastructure to record highs, but power supply and grid capacity now dictate project timing, according to Jarrett Appleby, CEO of Appleby Strategy Group (ASG). The advisory firm, founded by veteran operators from Digital Realty, CoreSite, and Equinix, focuses on feasibility and execution for data center and energy projects where grid constraints are increasingly the limiting factor.

Power and grid capacity top concerns

In Apple’s view, data center project risk has shifted away from tenant demand and toward grid and power limitations. Even as new AI and cloud workloads drive record demand for compute-intensive capacity, it is increasingly interconnection queues, grid availability, and access to land and permits that dictate which sites reach shovel-ready status. Delays in obtaining grid capacity or protracted interconnection processes directly affect the schedule, cost, and ultimately the feasibility of major digital infrastructure investments.

This reality is forcing developers, investors, and hyperscalers to compete aggressively for sites with clear paths to power and connection. Appleby points out that those who secure power and site readiness at the outset can differentiate themselves from the rest of the market. For institutional buyers, this shift means that early-stage grid and permitting strategy has moved from a compliance issue to a core competitive variable in underwriting data center projects.

For investors and owners, this further raises the importance of deep due diligence on power procurement, grid interconnection, and permitting. It also prompts more attention and resources toward advocating grid capacity upgrades or crafting hybrid on-site generation solutions, especially in high-demand regions affected by AI and hyperscale expansions.

ASG’s advisory model and practitioner approach

Appleby Strategy Group (ASG) distinguishes itself by drawing on a team of executives with direct experience in data center, power, and fiber operations. The firm’s leadership background at Digital Realty, CoreSite, and Equinix allows it to bridge the gap between theoretical site assessments and actual project execution.

ASG provides clients with feasibility analysis, power and interconnection advice, site selection, land control, permitting, and transaction preparation. The company’s founding principle is to deliver the blunt operator view: stating upfront which projects can realistically reach financeable, transaction-ready status given the true constraints of grid and permitting processes. This means “truth-telling” to development sponsors and investors about what is and is not possible on a given timeline, based on practical experience navigating ISO/RTO rules and utility procedures.

Appleby’s approach integrates execution into early strategy work, reducing the risk of projects stalling after initiation but before site or power readiness is achieved. For buyers and equity sponsors, this discipline increases the likelihood that capital is allocated to executable and profitable builds instead of stalled speculative efforts.

AI, neocloud, and new customer segments

The firm’s clientele has shifted in tandem with sector growth. Where traditional engagements revolved around colocation and enterprise environments, ASG today works closely with AI campus developers, emerging neocloud operators, and capital entering digital infrastructure for the first time. These clients require more than site search; they need solutions for power procurement, regulatory approvals, and value creation through early-stage partnerships or capital strategy.

AI and neocloud developers are specifically seeking out sites with rapid speed to power, grid queue navigation, and flexible ownership models that can accommodate hybrid power sources or on-site generation. Meanwhile, energy utilities and owners of generation assets are looking to monetize land or surplus power by aligning with hyperscale or digital infrastructure tenants, deepening the convergence of energy and data center markets in certain U.S. regions.

ASG identifies these emerging segments, AI infrastructure, utility partnerships, and institutional capital, as the primary growth opportunities, reflecting a maturing market where power and digital asset development become intertwined from day one. The interdependency of these markets is expected to deepen through 2026 to 2028 as demand and regulatory complexity increase.

Integrating energy, regulation, and project delivery

An essential component of ASG’s practice is integrating grid strategy and regulatory risk into every phase of site and asset development. This spans interconnection cost modeling, queue position management, selection of on-site and hybrid power solutions, and relationship building with utilities and state authorities.

Given growing scrutiny on energy consumption and regional transmission bottlenecks, projects that prioritize “grid citizenship” and regulatory best practices are able to clear permitting and finance milestones ahead of less-prepared competitors. ASG’s process includes identifying sites able to achieve timely approvals, accurate cost allocation for interconnection, and strategies that de-risk timelines in active RTO/ISO markets.

Through their practitioner-led model, ASG can facilitate early introductions between landowners, power providers, hyperscalers, and institutional capital. These pre-emptive partnerships not only accelerate deal flow but allow for shared risk and coordinated development of high-value sites in power-constrained regions.

Global reach, US focus, and future integration

ASG is headquartered in Northern Virginia, where the intersection of power security, fiber access, and hyperscale demand is most visible in the U.S. However, its advisory practice extends across North America and internationally, following clients into new market territories experiencing similar capacity and grid constraints.

Looking ahead, ASG foresees a convergence where digital infrastructure and power projects are conceived as unified asset classes. Data centers, power plants, and high-capacity transmission assets will increasingly be planned and built as co-located or directly integrated developments. This ten-year view, shaped by rapid AI development and persistent grid challenges, underscores the need for investor diligence, early operator involvement, and sophisticated grid engagement to identify winning sites and structure timely deals across the sector.

Reporting via the original publisher