Analysts say cheap energy and storage make sense for bit barns despite policy headwinds

Despite the Trump administration's opposition to renewables, solar power will likely remain part of datacenter energy supply mix due to its low cost.

This is according to financial analyst Jefferies, which says in a research note - shared with The Register - that clean energy companies are going "on the offense" and adapting to the changing times in which they find themselves.

That reality includes significant cuts in last summer's US budget bill to many of the tax incentives that clean energy projects benefited from since the passage of the Inflation Reduction Act in 2022. This followed hot on the heels of an earlier executive order halting all federal approvals for wind energy projects.

However, Jefferies notes the budget bill has created regulatory certainty, with clean energy firms now targeting AI datacenter offtake agreements. Nuclear, gas, and even geothermal are better positioned versus wind and solar to meet this demand ...