BATON ROUGE, La. (press release) — Cardinal Capital, a boutique commercial finance advisory firm based in Baton Rouge, says the artificial intelligence (AI) boom is no longer just a Silicon Valley story—it’s reshaping the energy grid and creating unprecedented lending opportunities for commercial banks across the Southeastern U.S.
The firm sees a new frontier emerging at the intersection of AI and power infrastructure. With hyperscale data centers springing up nationwide to meet insatiable AI processing needs, utilities and developers alike are seeking capital to upgrade and expand the grid.
“This is the biggest infrastructure lending opportunity in a generation—and it’s happening right in our backyard,” said Rob Powell, Partner at Cardinal Capital. “AI doesn’t run on imagination. It runs on megawatts.”
The Power Behind the Machines
In the first half of 2025 alone, U.S. utilities have filed for over $29 billion in electricity rate increases to fund grid enhancements, according to the Financial Times. Major players like Entergy and Southern Company—both with deep footprints across Louisiana and the Gulf South—are exploring new generation assets and transmission upgrades to attract AI infrastructure projects.
Meanwhile, data center operators like Google, AWS, Meta, and CoreWeave have committed more than $90 billion to U.S.-based AI-focused data centers—many of which require proximity to renewable or natural-gas-heavy grids for sustainable operations.
“We’re seeing dual demand: from utilities needing to expand capacity, and from private developers racing to build facilities that can support high-density computing,” Powell said. “This opens the door for creative capital stacks and regional partnerships.”
New Lending Models Emerging
Traditional commercial lending structures are adapting to this AI-driven surge. Long-term utility capex, land acquisition for energy-adjacent CRE, and public-private partnerships for grid innovation are all in play.
Banks, especially in the Southeast, are beginning to:
- Finance grid-connected renewable energy projects (e.g., solar + battery storage) targeted for AI center adjacency.
- Underwrite data center development loans in mid-tier metro markets like Baton Rouge, Birmingham, and Jackson.
- Support municipalities looking to modernize infrastructure and attract tech-forward employers.
“Smart bankers are shifting from funding strip malls to financing the future grid,” Powell added. Those who aren’t are missing an opportunity.
Louisiana and the Southeast: An Emerging Power Hub?
With abundant natural gas resources, an improving solar landscape, and existing transmission corridors, Louisiana and its neighbors are becoming unlikely stars in the AI energy conversation.
“The Southeast has land, grid access, and a pro-development environment,” said Powell. “That makes us very attractive to both Big Tech and the capital markets.”
Cardinal Capital is currently advising a number of stakeholders on financing models that bridge traditional commercial real estate (CRE), energy development, and tech lending—what Powell calls “tri-sector structuring.”
AI Isn’t Just the Product. It’s the Catalyst.
While headlines focus on AI applications, the underlying energy need is quickly becoming the biggest story. From transformers to turbines, every part of the power value chain is seeing renewed investment.
“For commercial lenders, this is a once-in-a-decade chance to fund the infrastructure behind the next industrial revolution,” Powell said. “And the Southeast is right in the flow of capital.”
About Cardinal Capital
Cardinal Capital helps commercial banks, developers, and entrepreneurs structure smart financing for bold ideas. Based in Baton Rouge, we specialize in energy, hospitality, real estate, and adventure-driven business. We help clients see around corners—and then finance what’s coming next.