The Great Migration Has Begun

A bombshell report dropped this week.

And it confirms what we've been tracking:

The data center map is being redrawn in real time.

Bloom Energy just released their 2026 Data Center Power Report.

They surveyed 152 decision-makers across hyperscalers, colocation developers, utilities, and GPU service providers.

And the numbers tell a story everyone building in this space needs to understand.

Here's the headline:

Texas is about to become the largest data center market in America.

By 2028.

And one-third of all data centers will be completely off-grid by 2030.

Let that sink in.

This isn't some think-tank projection.

This is 152 executives telling you where THEY'RE deploying capital.

Here's what they said:

Texas is taking over:

→ Data center demand in Texas will exceed 40 gigawatts by 2028
→ That's up from 8 GW in 2025 — a 5X increase in three years
→ Texas currently has 387 data centers
→ It will surpass every other market in the country

The old guard is losing ground:

→ California and Oregon stand to lose half their relative market share
→ Georgia is leading a boom in the Southeast
→ Legacy regions are becoming yesterday's news

The off-grid revolution is real:

→ One-third of data centers will operate independently of the grid by 2030
→ That means building their own power plants
→ On-site generation is no longer a backup plan — it's the PRIMARY strategy

The disconnect is widening:

→ Developers expect grid connections one year faster than utilities can deliver
→ This gap is growing, not shrinking
→ "Power can no longer be treated as a downstream consideration"

The bottom line from Bloom:

"Operators that continue to plan projects around traditional grid assumptions risk falling behind on both schedule and scale."

Translation?

If you're still betting on the grid to save you...

You're already behind.

The report confirms what the smart money already knew.

Texas has:

→ Cheap natural gas with easy access
→ Available land without the zoning fights
→ A regulatory environment that WELCOMES gas-fired power
→ ERCOT operating independently from federal grid rules
→ No state income tax sweetening the deal

While communities in Michigan, Pennsylvania, and Virginia are shutting down town hall meetings over data center proposals...

Texas is rolling out the red carpet.

The Stargate project. Eric Schmidt's Bolt venture. Google. Nvidia. Anthropic.

They're all headed to Texas.

The math is simple:

Where there's power... there will be data centers.

Where there's opposition... there won't be.

Texas has power.

The Midwest and Mid-Atlantic have opposition.

Speaking of opposition...

Microsoft isn't backing down from Wisconsin.

On January 20, they announced plans for 15 more data centers in Mount Pleasant.

Two new campuses.

Worth more than $13 billion.

This is ON TOP of the existing project at the former Foxconn site.

The details:

Durand Avenue Campus:

→ Multiple data center buildings
→ Expected to generate ~$45 million annually in village revenues

International Drive Campus:

→ Six data centers
→ 74,000-square-foot office building
→ 3.5 million+ square feet across 530 acres
→ Expected to generate ~$30 million annually

The water question:

Microsoft previously stated their Mount Pleasant facilities would use up to 8.4 million gallons annually at full buildout.

A spokesperson confirmed the expansion plans are expected to fall within that estimate.

What this tells you:

Microsoft's "Good Neighbor" pledge from last week wasn't a retreat.

It was a repositioning.

They're still building aggressively.

They're just changing HOW they engage communities and pay for infrastructure.

Wisconsin is ground zero for that new approach.

Meanwhile, 200 miles east...

The resistance is getting more organized.

On January 12, hundreds of residents packed a Lowell Township planning commission meeting to oppose Microsoft's proposed data center near Grand Rapids.

The result?

Meeting adjourned within minutes.

For the second month in a row.

Last month, the crowd exceeded capacity and the meeting was rescheduled.

This month?

Same story.

One frustrated resident, Greg Forbes, called out the township's governance:

"People have come out for the second month in a row hoping to express their opinion on this project, and they've been prevented from doing that. What type of governance structure is that?"

The backstory:

Microsoft finally revealed itself as the company behind the project after weeks of mystery.

Franklin Partners, the Illinois-based developer, had been keeping the client's identity secret.

The township announced it was "suspending participation" until more details were provided.

The next planning commission meeting is February 9.

Michigan's broader picture:

→ Lowell Township: On hold
→ Howell Township (Meta): Withdrawn after moratorium passed
→ Gaines Township (Microsoft): On hold
→ Northville: Preemptive 12-month moratorium passed
→ Springfield Township: 180-day moratorium enacted

This is what organized opposition looks like.

And it's spreading.

The supply chain implication:

Projects that were "certain" six months ago are now in limbo.

If you're chasing work in Michigan...

Proceed with caution.

The political risk just increased.

Across the Atlantic, Ireland just ended a four-year standoff.

The Commission for Regulation of Utilities (CRU) published their final decision on data center grid connections in December.

Here's what it means:

The moratorium is over.

Since 2021, Ireland has effectively blocked new data center grid connections around Dublin.

That's done.

But the new rules are STRICT:

→ On-site power required: Any data center seeking a grid connection must install dispatchable generators or battery systems matching their full electricity demand

→ Give back to the grid: That generation must be available to the national grid when needed

→ 80% renewable requirement: Data centers must source 80% of their annual demand from renewable electricity generated in Ireland — with a six-year glide path to compliance

→ Location matters: System operators can reject sites in constrained areas of the network

What the industry is saying:

Richard Murphy of Pinsent Masons called it "a compromise" that will have "ramifications for potential investment."

The rules create "additional complexity for data center developers seeking to invest in Ireland who will now also need to navigate wholesale energy markets."

Why this matters globally:

Ireland just created a template for how governments can reopen data center development without sacrificing grid stability.

The model:

You can build.

But you have to bring your own power.

And you have to share it.

Watch for this framework to appear in other jurisdictions facing similar pressures.

The former Google CEO isn't waiting around.

Eric Schmidt launched Bolt Data & Energy in partnership with Texas Pacific Land.

A company that owns 882,000 acres of West Texas land.

More than Rhode Island.

The plan:

→ Start with 1 GW of natural gas-fired power
→ Scale to 10 GW (enough to power 7 million homes)
→ Eventually transition to solar, wind, battery, and nuclear
→ Vertical integration: own the land, the power, AND the data centers

The funding:

Bolt raised $150 million in initial capital.

TPL contributed $50 million plus right of first refusal on water supply.

Schmidt's thesis:

"Energy is the main constraint in scaling AI. If we want to keep America competitive, we have to solve this problem. Bolt was created to address this challenge."

"We're taking a different approach from traditional data center models that lease space and buy power from the grid. By vertically integrating energy ownership with advanced data infrastructure, we can design a platform that is both efficient and resilient."

Why this is significant:

This is the former CEO of Google saying the grid is NOT the answer.

The smartest money in tech is building AROUND utilities.

Not WITH them.

The regulatory machinery is grinding forward.

PJM's compliance filings were due January 17-19.

These filings respond to FERC's December 18 order requiring new rules for data centers co-locating with power plants.

What PJM had to file:

→ How co-located customers can access provisional interconnection
→ How to request service below nameplate capacity
→ How to accelerate the interconnection process
→ How to use surplus interconnection service

What's coming next:

→ February 16, 2026: Full tariff revisions detailing service options for co-located loads
→ February 16, 2026: PJM's initial brief on rates and terms
→ March 18, 2026: Response deadline
→ April 17, 2026: Reply deadline

Three new transmission services:

→ Interim non-firm service — Get connected faster while upgrades are built
→ Firm Contract Demand service — Contract for specific grid capacity
→ Non-Firm Contract Demand service — Same, but interruptible

Why this matters:

PJM serves 67 million people across 13 states.

Whatever rules they establish will likely become the template for other grid operators.

If you're doing business in the Mid-Atlantic or Midwest...

These rules will shape what projects move forward and how quickly.

1. PJM Filing Details

The compliance filings are in.

Now we'll see what the actual terms look like.

2. Microsoft's February 9 Showdown

Lowell Township's next planning commission meeting.

Will it actually happen this time?

3. More "Good Neighbor" Pledges

Trump promised Microsoft was "first."

Still waiting on Google, Amazon, Meta.

Are they coming?

4. Bloom Energy Stock

Up huge on the back of this report.

They're reporting Q4 earnings February 5.

That call will be telling.

5. Texas Project Announcements

If Texas is becoming the center of gravity...

Expect more major announcements.

The Permian Basin is suddenly very interesting.

The big picture:

The data center industry is splitting into two tracks.

Track 1: Grid-Connected

→ Facing opposition, delays, rate fights
→ Regulated, complicated, uncertain timelines
→ Still happening, but slower and harder

Track 2: Off-Grid / Co-Located

→ Building own power, bypassing utilities
→ Faster timelines, fewer permitting battles
→ Higher upfront cost, more control

The Bloom report says one-third of projects are going Track 2 by 2030.

That's not a trend.

That's a structural shift.

If you're in trucking/heavy haul:

→ Texas just became the primary destination
→ Off-grid projects need generators, transformers, equipment delivered to remote sites
→ Wisconsin remains active despite opposition elsewhere

If you're in electrical/power systems:

→ On-site generation is the growth market
→ Gas turbines, solar arrays, battery storage — all going to data center sites
→ Co-location deals need specialized interconnection work

If you're in construction:

→ Follow the projects with power sources already secured
→ Texas, Gulf Coast, and federal land (military bases) are the path of least resistance
→ Michigan is a minefield right now

If you're in equipment supply:

→ Backup power is becoming primary power
→ Anyone serving off-grid installations has tailwinds
→ Lead times on generation equipment are about to get worse

The market is choosing.

Texas is winning.

The Midwest is fighting.

Ireland just set new rules.

And the smartest money in tech is building AROUND the grid.

Not depending on it.

If your business model assumes traditional grid connections and community approval...

You're betting on the slow track.

If you're positioned for off-grid, co-located, and bring-your-own-power projects...

You're on the fast track.

The Bloom report put numbers on what we've been watching.

One-third of data centers going off-grid by 2030.

Texas taking 30% of U.S. demand by 2028.

California and Oregon losing half their share.

This isn't speculation.

This is 152 industry decision-makers telling you where the puck is going.

Position accordingly.

That's Issue #4.

If this was useful, forward it to someone who moves equipment, builds infrastructure, or finances deals.

Because the people making money in this buildout aren't the ones hoarding intel.

They're the ones SHARING it.

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Talk next week.

— Edem

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