In this episode of the Energy News Beat Podcast, host Stu Turley sits down with Jon Brewton, CEO and Founder of Data2, and Kyle Koss, President of ATCO Ventures, to explore a critical challenge facing the AI revolution: infrastructure. As artificial intelligence demand skyrockets—with projections suggesting a 5,000% increase in compute requirements over the next five years—traditional mega data centers are hitting a wall. The solution? ATCO Edgeworks, a groundbreaking modular edge computing platform that brings AI infrastructure closer to power sources rather than centralizing it in massive facilities. This conversation delves into how distributed, modular data centers can democratize AI access for mid-sized companies, solve environmental and community concerns, and create a more resilient computing landscape. With insights into explainable AI, military applications, and real-world use cases from the energy sector, this episode reveals why the future of AI infrastructure isn't about building bigger—it's about building smarter and closer to home. Connect with Kyle on his LinkedIn: https://www.linkedin.com/in/kyle-koss-3bbb1927/ Check out ATCO here: https://www.atco.com/en-ca.html Connect with Jon on his LinkedIn: https://www.linkedin.com/in/jon-brewton-datasquared/ Data 2 website: https://www.data2.ai/ 1. Distributed Edge Computing InfrastructureThe core focus is on ATCO Edgeworks, a modular data center solution designed to bring compute closer to power sources rather than centralizing it. This addresses the massive infrastructure bottleneck created by AI demand, which requires enormous capital investments and long lead times (3-5 years) for traditional mega data centers. 2. AI Infrastructure Bottleneck & Power ConstraintsThe guests discuss how AI demand is exploding exponentially, with Goldman Sachs projecting a 5,000% increase in compute demand over the next half decade. The challenge isn't just computing power—it's the massive power requirements, capital commitments, and infrastructure constraints that only a handful of mega-companies can afford. 3. Democratizing AI AccessA key theme is making AI infrastructure accessible to mid-tier companies (the "mom and pop" oil and gas operators) who can't afford billion-dollar data center commitments. Edgeworks enables smaller organizations to deploy AI capabilities without massive upfront capital or 15-20 year power contracts. 4. Environmental & Community Impact (NIMBY Solutions)The discussion addresses concerns about data centers' environmental footprint—water usage, cooling requirements, power grid strain, and community opposition. Modular edge computing reduces these impacts by distributing load across smaller, localized units rather than massive centralized facilities. 5. Data2's Explainable AI & Trust LayerJon Brewton emphasizes the importance of AI validation and explainability. His company Data2 has patented technology that adds a "trust layer" to AI systems, making decisions auditable and trustworthy. They cite a real example where their platform discovered $98 million in hidden fraud risk. 6. Military & Defense ApplicationsThe guests discuss edge compute's critical role in defense—portable, distributed systems that can be deployed in the field, reducing vulnerability from centralized targets and enabling real-time AI decision-making for warfighters. 7. Flexible, Modular Design BenefitsThe Edgeworks solution is built entirely on modular architecture (hardware and software), allowing customers to: Scale up or down based on demandUse existing power sources (natural gas, solar, flared gas)Avoid single points of failureReduce unnecessary data movement8. Real-World Use CasesExamples discussed include: Oil and gas companies monetizing flared natural gas to power computeBitcoin mining operations pivoting to AI workloadsIndustrial sites leveraging existing infrastructure for edge computeMilitary deployment scenarios9. Market Timing & Competitive AdvantageThe guests argue this is the right moment for distributed edge computing because: AI demand is rising exponentially, power availability is constrained, and capital requirements for centralized infrastructure are prohibitive. This creates market demand for alternative architectures. 10. Data Sovereignty & SecurityPartnerships with encryption providers (like XQ) ensure quantum-encrypted, zero-trust security—critical for government and military applications, and for protecting sensitive data in distributed environments. The overarching narrative: Traditional mega data centers are hitting infrastructure limits. Edgeworks offers a paradigm shift by bringing compute to where power exists, enabling broader participation in AI, reducing environmental impact, and creating a more resilient, distributed compute market. At Energy News Beat, we Make Appendices Great Again. Check out the World's Greatest Podcast Show Notes at EnergyNewsBeat.co or EnergyNewsBeat.com, and the Energy News Beat Substack at: https://theenergynewsbeat.substack.com/ A shout-out to Steve Reese and the Reese Energy Consulting group for sponsoring the Podcast https://reeseenergyconsulting.com/. Data2 if you have any business systems, can you trust A? Well, they have the patent on validation. . https://data2.zoholandingpage.com/energy And we have WellDatabase rolling, and we use their tools for the Energy News Beat weekly Rig Reports: https://welldatabase.com/ Also entering Sponsor Rey Trevino, Pecos Operating https://pecos.energy/
