Renewable power and batteries will play a key role in powering the AI revolution, according to Solomon Partners Director Mike Mohamed.

“I think, ultimately, power availability will be the limiting factor and we are going to build out as many data centers as we have the supply for,” Mohamed, a director in Solomon Partners’ Infrastructure, Power & Renewables practice focused on energy transition, said on Infralogic’s Crossroads podcast. “The pace of change is very rapid.”

Mohamed acknowledged that renewables alone cannot meet rising energy demand, noting growing investment in technologies such as geothermal and nuclear. Still, by pairing renewables and batteries, developers are finding ways to simulate firm, dispatchable power, he said.

“That is pretty powerful and really exciting for the sector,” he added.

Mohamed noted that the M&A market for development projects was mostly frozen last year due to uncertainty around what eventually became the One Big Beautiful Bill Act (OBBBA), but the market has picked up again this year, he said.

“The capital needs of last year didn’t go away, they were just postponed due to the uncertainty,” he noted.

To listen to the podcast, click here