The AI boom is creating an unexpected trend: data centers are increasingly looking to become their own utilities. For years, developers built facilities and then connected them to the grid.

But according to Hyliion Holdings Corp (HYLN) CEO Thomas Healy, that model is starting to break down as AI's appetite for electricity outpaces available power infrastructure.

"They're being told by the grid providers that power isn't available," Healy told MarketDash in an exclusive email interview. "Thus, they are shifting to making their own electricity onsite."

The shift could have major implications not only for AI infrastructure, but also for the companies positioned to supply distributed power solutions.

AI's Power Crunch Is Getting Worse

The rapid rise of AI has dramatically increased electricity demand across the data center industry.

While investors often focus on GPUs and server capacity, Healy says power availability has quietly become one of the biggest constraints facing new deployments.

"The demand and opportunities are growing faster than most realize," he said.

According to Healy, modern AI facilities can require enormous amounts of electricity, often at levels that local utilities simply cannot deliver on short notice.

"The interconnect queue is measured in years, not months," he said.

That delay creates a problem for hyperscalers and AI developers racing to bring new capacity online.

Why On-site Generation Is Gaining Traction

Instead of waiting years for new transmission lines or utility approvals, some operators are increasingly evaluating power generation directly at the point of consumption.

Healy believes that approach offers a meaningful deployment advantage.

"The companies that figure out on-site power generation are going to have a structural advantage in deployment speed," he said.

Hyliion's KARNO platform was designed around that concept, providing modular power generation that can be deployed where electricity is needed rather than relying entirely on the existing grid.

The company's opportunity appears to be growing alongside AI demand. Healy revealed that Hyliion currently has nearly 750 KARNO cores under non-binding letters of intent, with more than half tied to data center and AI infrastructure opportunities.

The Next AI Infrastructure Theme?

The AI trade has already elevated chipmakers, networking companies and cooling providers into market favorites.

Power generation could be next.

Larry Fink recently described power as one of the biggest investment themes tied to artificial intelligence. Healy agrees, arguing that capital and customer demand are increasingly flowing toward solutions that can address energy bottlenecks.

"Every hyperscaler has teams dedicated to nothing but securing power capacity," he said.

For investors, the message is straightforward: the AI buildout isn't just creating demand for more computing power. It's creating demand for more electricity.

And if utilities can't supply it fast enough, data centers may increasingly decide to generate it themselves.