Power Is the New Compute

Commentary: The binding constraint on artificial intelligence has shifted from chips and models to electrons, and the advantage now belongs to whoever controls power, equipment, land, and capital together.

NEW YORK, June 11, 2026: For three years, the argument over artificial intelligence's binding constraint has worked its way down the stack. First it was chips: whoever held the GPUs held the future. Then it was models: whoever trained the frontier system would own the market. Both arguments have aged badly, and the most powerful man in enterprise software said as much himself. "The biggest issue we are now having is not a compute glut, but it's power," Microsoft CEO Satya Nadella said on the Bg2 Pod in November. "You may actually have a bunch of chips sitting in inventory that I can't plug in... It's not a supply issue of chips; it's actually the fact that I don't have warm shells to plug into."

Consider what that admission means. Microsoft is spending $190 billion on capital projects this year, part of roughly $725 billion in combined 2026 capex guided by the four largest hyperscalers, up 77 percent from 2025, according to a Tom's Hardware aggregation of first-quarter earnings. The richest buyers in the history of computing can afford the chips. What they cannot buy on any schedule is the power to run them.

Any production system runs at the speed of its scarcest input, and the AI economy is relearning that old lesson the hard way. A GPU can be airfreighted across the Pacific in a day; a substation cannot. The International Energy Agency projects that global data center electricity consumption will more than double to roughly 945 terawatt-hours by 2030, from about 415 TWh in 2024. Against that demand curve stands an American grid where, per Lawrence Berkeley National Laboratory's "Queued Up" study, more than 2,060 gigawatts of projects sit in interconnection queues with a median five-year wait, and where, Data Center Knowledge reports, projects entering the queue in 2025 face seven-plus years to operation. Wood Mackenzie finds that power transformer lead times have swollen from roughly 50 weeks in 2021 to about 120 weeks on average. JLL puts North American colocation vacancy at 2.3 percent, a historic low, while CBRE pegs it at a record 1.4 to 1.6 percent. "Power has become the new real estate," as Andrew Batson, JLL's head of U.S. data center research, put it last August.

The cost of the old, fragmented development model is now showing up in the data. Sightline Climate analyst Olivia Wang tracked more than 16 gigawatts of data center capacity slated for 2026 and found only 5 GW actually under construction, projecting that 30 to 50 percent of this year's slated capacity could slip. Nixxy, Inc., in a June 11 announcement, cites industry reports indicating nearly half of all U.S. AI data center projects planned for 2026 deployment have been delayed or canceled, and analysts it cites estimate that more than 7 gigawatts of anticipated AI computing capacity may fail to come online as scheduled. None of this should surprise anyone who has watched how a typical AI campus gets built. It is a relay race run by strangers: a developer who owns no power, a utility sitting on a multi-year queue, a construction consortium fighting everyone else for transformers, and financing contingent on all three performing on time. With that many handoffs, batons get dropped, and this year roughly half the field dropped one.

The market's answer is to stop waiting for the grid. Behind-the-meter generation, building power onsite with assets such as behind-the-meter gas turbines, can reach first electrons in roughly 18 months versus interconnection waits of four to seven years, according to analyses from Data Center Knowledge, SemiAnalysis, and S&P Global. Grist and Marketplace count 46 data centers totaling some 56 GW now planning their own behind-the-meter power. Even this escape route is narrowing into a queue of its own. GE Vernova's gas turbine backlog hit 100 gigawatts in the first quarter, per its April 8-K, and CEO Scott Strazik has been blunt about what that means: "2026 and '27 are largely sold out; we are approaching filling out '28." That scarcity sharpens the thesis rather than blunting it. When power, equipment slots, land, and capital are all scarce at the same time, the advantage goes to whoever holds them all in one hand, and a developer holding only one or two of them will struggle to deliver on the timelines that matter.

That is the lens through which to read the proposed Nixxy-Tachyon9 combination, announced via binding letter of intent and highlighted again today by Nixxy (NASDAQ: NIXX). The companies say the platform is being designed to integrate power, infrastructure, financing, and compute deployment into a single execution framework, an attempt to put every scarce input under common control. Per the announcement, Tachyon9 is pursuing approximately $1 billion of planned capital investment, largely through debt facilities and construction loans intended to be backed by projected offtake agreements. Tachyon9 contributes approximately $64 million in equipment, land option rights for the Nakota project, and a signed LOI for the entire 1 GW development, with a Phase 1 buildout of 120 MW slated for Q2 2027. Nixxy says it brings the public market platform, telecommunications infrastructure, AI technologies, and capital markets capabilities. "We recognized early that AI's greatest bottleneck would not be models or GPUs - it would be infrastructure," said Shahal Khan, chief executive officer of Tachyon9, in the release. "We are building behind the meter gas turbines, so we avoid these delays."

The necessary caveat is that these are plans, and the proof will come only when plans become megawatts. Plenty of integrated visions have died in permitting offices and lender negotiations, and Nixxy's statements are forward-looking by the company's own admission. But the design answers the right question at a moment when most of the industry is still answering the wrong one. The last decade's mantra held that software eats the world. The correction now underway is that software runs on the world, on gas and copper and land and credit, and the firms that assemble those physical inputs fastest will set the pace for everyone else. Chips decided the last cycle of this industry; electrons will decide the next.

About Nixxy, Inc.

Nixxy, Inc. (NASDAQ: NIXX) is an AI communications and data infrastructure company focused on next-generation digital infrastructure platforms positioned at the intersection of artificial intelligence, high-performance compute, energy, and data center infrastructure. The Company is pursuing large-scale opportunities supporting the rapidly growing global demand for AI compute capacity, sovereign AI initiatives, and next-generation energy-backed digital infrastructure. For more information, visit www.nixxy.com.

About Tachyon9

Tachyon9 is a private operating company specializing in energy infrastructure, transmission equipment, and data center assets. Tachyon9 serves as the primary asset and revenue contributor in the proposed transaction, contributing approximately $64 million in equipment, land option rights for the Nakota project, and a signed LOI for the entire 1 GW development.

Contacts

Investor Relations: Nixxy, Inc., [email protected] Media: John Arundel, Managing Director, Perdicus Global Communications, Washington, DC, [email protected], (703) 963-4191

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed strategic combination between Nixxy, Inc. and Tachyon9 Corporation, planned capital investment, development timelines, projected offtake agreements, and anticipated market conditions. Forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Investors should review the risk factors described in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 15, 2026, and other filings with the Securities and Exchange Commission. Nixxy undertakes no obligation to update forward-looking statements except as required by law.