Casey Hanmer

Founder of Terraform Industries and analyst on the intersection of energy, technology, and geopolitics.

Claims

As speaker

Mentioned in

Key positions and views

The cost of solar power is declining at an accelerating, exponential rate, making it economically superior to continuing the operation of existing fossil fuel plants.

For hyperscalers building AI data centers, the speed of deploying massive amounts of power is the primary constraint, far outweighing the cost of electricity or even the solar panels themselves.

US regulatory friction, particularly environmental review processes like NEPA, is the most significant barrier to the country's energy transition, creating multi-year delays that negate technological and economic advantages.

China has a critical, indefensible geopolitical vulnerability in its reliance on seaborne oil imports from the Middle East, which its navy cannot protect.

The demand for firm power is so intense that the entire global manufacturing capacity for new gas turbines is already sold out through approximately 2030, creating a major bottleneck for grid stability during the transition.

Podcast consensus on Hanmer

Points of consensus

▶Hanmer consistently argues that solar energy is not just becoming cheaper, but its cost is declining at an accelerating rate, making it more economical to build new solar than to operate existing coal plants.Apr 2026

▶A core tenet of his analysis is that the explosive growth of AI has created an unprecedented demand for energy, where the speed of power deployment has become a more critical business factor for hyperscalers than the actual cost of electricity.Apr 2026

▶He emphasizes that regulatory frameworks, such as NEPA and differing state-level policies, are the primary bottleneck for the US energy transition, significantly slowing the deployment of new infrastructure despite favorable economics.Apr 2026

▶Hanmer views the capital expenditure for AI data centers as being overwhelmingly dominated by the cost of GPUs, to the extent that even significant tariffs on solar panels would not materially affect project economics.Apr 2026

Points of debate

▶Hanmer presents a nuanced view of the US-China dynamic, highlighting China's significant lead in solar manufacturing while also pointing out its critical geopolitical vulnerability due to its dependence on oil tanker fleets it cannot defend.Apr 2026

▶He contrasts the economic and environmental superiority of solar power with the reality of the market, where the entire manufacturing capacity for new gas turbines is sold out through 2030, indicating a continued, near-term reliance on fossil fuels for firm power.Apr 2026

▶There is a tension between the rapid technological acceleration of renewables, which have a 43% learning rate, and the slow, multi-year environmental review processes in the US that inhibit capitalizing on these advancements.Apr 2026

▶He notes that while electricity is a relatively small portion of an AI company's marginal cost to serve a query (~10%), the sheer scale of data center power demand makes securing massive amounts of reliable electricity the central challenge for the industry's growth.Apr 2026

Key themes

▶The Economic Inevitability of Solar PowerApr 2026

Hanmer posits that solar energy has crossed a critical economic threshold. He argues its cost is declining at an accelerating rate, making it cheaper to build new solar facilities than to pay the operational costs of existing coal plants. This is driven by a steep learning rate where costs drop 43% for every doubling of production.

For investors, this suggests that the fundamental value proposition has shifted from fossil fuels to renewables, and the primary risks are no longer technological or economic but regulatory and related to deployment speed.

▶AI as an Unprecedented Energy Demand CatalystApr 2026

According to Hanmer, the rise of AI is creating a voracious and urgent demand for electricity, with data center racks approaching 1 megawatt each. This demand prioritizes the availability and speed of power deployment over its cost, fundamentally changing the calculus for energy infrastructure development.

Analysts should view the AI supply chain as intrinsically linked to the energy sector; companies that can rapidly deploy gigawatt-scale power will be critical enablers of the AI boom, representing a major investment opportunity.

▶Geopolitical Energy ChokepointsApr 2026

Hanmer contrasts China's dominance in solar manufacturing with its profound strategic weakness: a heavy dependence on Middle Eastern oil. This oil must traverse the Indian Ocean via tanker fleets that its navy cannot effectively defend, creating a significant vulnerability for its economy and military.

This highlights that energy security in the 21st century is twofold: securing the manufacturing supply chain for new energy technologies and protecting the supply lines for legacy fossil fuels during the transition.

▶Regulatory Drag on Technological Acceleration

A recurring theme is the conflict between America's rapid technological innovation and its slow regulatory apparatus. Hanmer points to policies like NEPA, which can trigger four-year reviews for solar projects, and contrasts the slow deployment in California with the rapid build-out in Texas, attributing the difference to regulatory environments.

The key variable for the pace of the US energy transition is policy reform. Investors and analysts must factor in regulatory risk and jurisdictional differences as primary drivers of project success and timelines.

Source episodes

Sentiment over time

Not enough data for timeline

Changes over time

Argument Premise

Establishes the fundamental economic shift where the operational cost of an existing coal plant now exceeds the all-in cost of building a new solar plant, driven by a 43% learning rate for solar technology.

Demand Catalyst

Identifies the AI boom as a primary driver of new energy demand, noting that hyperscalers prioritize the speed and availability of power over its cost, as electricity is only ~10% of the marginal cost of a user query.

Identified Bottlenecks

Highlights the critical constraints to meeting this new demand, including sold-out manufacturing capacity for gas turbines through 2030 and multi-year environmental reviews under NEPA for solar projects.

Geopolitical Framing

Frames the energy transition within a US-China competitive context, asserting the US is five years behind in solar manufacturing but that China has a critical, indefensible vulnerability in its oil supply chain.

Forward-Looking Predictions

Predicts that the confluence of these factors will lead to a future where most new data centers are solar-powered by 2027 and the entire grid becomes more decentralized as generation moves closer to consumption.

Suggested prompts

How does Hanmer's thesis on power availability over cost for AI data centers change the valuation models for energy projects and utility companies? &nearr;What are the second-order effects on urban planning, grid infrastructure, and land use if Hanmer's prediction about the radical decentralization of electricity generation comes true? &nearr;How does China's strategic oil vulnerability contrast with its dominance in solar manufacturing, and which factor poses a greater long-term risk to its economic stability? &nearr;If the 43% learning rate for solar is the key driver of its economic advantage, what specific technological or manufacturing breakthroughs are required to sustain this rate? &nearr;

Key concepts

AI Data Center Power 6 ep Solar Energy Economics 5 ep Energy Infrastructure & Grid 4 ep Natural Gas & Alternatives 4 ep Business & Investment 3 ep Manufacturing & Supply Chain 3 ep Geopolitics of Energy 2 ep Regulatory & Policy Issues 2 ep Technology Comparison 1 ep

Notable quotes

“It is not only the case that solar adoption production price decreases are continuing, they're accelerating, and the rate that they're accelerating is still accelerating.”

Casey Hanmer · China is killing the US on energy. Does that mean they’ll win AGI? — Casey Handmer

“And then they get almost all their oil from the Middle East, right? In countries that they don't control... on fleets of oil tankers that they can't defend because their navy doesn't have the ability to operate effectively in the Indian Ocean.”

Casey Hanmer · China is killing the US on energy. Does that mean they’ll win AGI? — Casey Handmer

“Because even if Trump puts in a 200% tariff on Chinese solar, and we're not able to bypass it via Vietnam or something, it's still a bargain. It doesn't matter. If you need solar to run your data center, it doesn't hurt in terms of the overall cost picture.”

Casey Hanmer · China is killing the US on energy. Does that mean they’ll win AGI? — Casey Handmer

“But at a certain point, it is the case right now that operating a coal plant costs more than building a new solar plant.”

Casey Hanmer · China is killing the US on energy. Does that mean they’ll win AGI? — Casey Handmer

Report last updated: Apr 21, 2026

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