Pete Modigliani

BREAKING: The value of US data centers under construction has officially surpassed the value of office buildings under construction for the first time in history. Data centers under construction are up+29% YoY, to a record $45.1 billion. Meanwhile, the value of offices under construction are down -13%, to $43.5 billion, the lowest since October 2015. Since November 2022, when ChatGPT was launched, data center construction is up +228%. Over that same period, office construction is down -38%. AI is reshaping the US economy.

The Office of the Director of National Intelligence today released the 2026 Annual Threat Assessment (ATA) of the U.S. Intelligence Community.   🔗 Read the assessment here: dni.gov/files/ODNI/doc…

So now it's not just the generals disappearing, but scientists as well. Reportedly high level scientists in radar and nuclear weapons have also been removed from institutions This is either a paranoid purging of anyone with power or there are profound problems in PLA weapons

"The only major system designed in the last 15 years that has been used in combat [Operation Epic Fury] is LUCAS — which we had to reverse engineer!" @PeteModi Many of these old platforms have had glow ups in recent years, but still - it's very bad that we don't design and deploy new systems regularly Hard hitting graphic from Defense Tech and Acquisition Substack

Students who took notes by hand scored ~28% higher on conceptual questions than laptop note-takers. Writing forces your brain to process and compress ideas instead of copying them.

Voting so far among subscribers on SBIR reauthorization.

> walk around your city catching pokémon > game asks you to scan a fountain. sure why not > 30 billion scans later > niantic owns a more detailed map than any government > sells game for $3.5B > spins off a spatial AI company > your pokéwalk is now classified infrastructure > delivery robots now navigate using your walks > you were never the player. you were the product.

Palantir CTO @ssankar on deterrence and why precision is important: “We should not forget— in WWII, only 6% of bombs dropped hit their target.” “It was atrocious.” Via @CNBC

1/ Today is the last day to preorder my book Mobilize: How the Reboot the American Industrial Base and Stop World War III. Mobilize tells the story of American defense innovation that won the 20th century. It shows how bureaucracy broke the Pentagon—and how a Defense Reformation led by heretical heroes is bringing speed, mass, and deterrence back to our military. This book couldn’t be timelier. The mission couldn’t be more urgent. Join the ranks of the heretical heroes. It’s time to mobilize.

Palantir’s @ssankar says we’ve had 4 ‘Sputnik moments’ over the last 4 years but none actually mobilized the US: — China's hypersonic glide vehicle — Russia sustaining the fight — The Houthis able to hold world trade and our assets at risk — 10 years of consumption in 10 weeks “We should be treating all munitions, potentially even our exquisite munitions as consumables.” “They’re not pieces of art to put on the shelf.” Via @HudsonInstitute

President Trump gave me a clear direction: modernize defense acquisition and accelerate innovation. The Department of the Navy is delivering.

Last December, we established our first Portfolio Acquisition Executive for Robotic & Autonomous Systems, led by Rebecca Gassler.

Today, we add five more interim PAEs:
➡️ Maritime - Chris Miller
➡️ Industrial Operations - VADM James Downey
➡️ Marine Corps - LtGen Eric Austin
➡️ Strategic Systems Programs - VADM Johnny Wolfe
➡️ Undersea / DRPM Submarines - VADM Rob Gaucher

Single accountable leaders empowered to move fast, take measured risk, and deliver capability to our warfighters at speed. Too much is at stake for business as usual.

@USNavy announces five new Portfolio Acquisition Executives (PAEs): • PAE Maritime: Chris Miller • PAE Industrial Operations: VADM James Downey • PAE Marine Corps: Lt Gen Eric Austin • PAE Strategic Systems Programs: VADM Johnny Wolfe • PAE Undersea/DRPM Submarines: VADM Rob Gaucher Transition teams are currently underway for three more PAEs for aviation, mission systems, and munitions. Likewise, the Navy is evaluating the possibility of a PAE for shore and another for supply.

A lot of people talk about the WWII mass production miracle. “I’m going to talk about WWI— when the US failed to deploy even a single US-designed fighter to the front.” Palantir’s @Madeline_Zimm, co-author of Mobilize with @ssankar, on lessons from WWI’s failures: “Money was not enough.” “We entered the war late, but when we tried to do a mass production push of mainly foreign designs, we were unable to do it because the aircraft at that time were literally— craft. They were made of wood and fabric.” “Where are the parallel to today? Our missiles are more like a craft, boutique industry and haven’t been designed for mass production.” “If we want to mass produce them, money is not going to be enough.” “We need to totally reimagine how we design and produce these things, and the most productive companies need to produce.” Via @ReaganInstitute

LUCAS: Rapid Warfighting Acquisition in Action • Multi-vendor Scalability from Day One. • Competition Baked into the Model. • Adaptable Design from the Start. • Open Architecture Enabling Rapid Capability Growth. open.substack.com/pub/defenseacq…

here is a definitive reading list for budding reindustrialists: phase 1: operations & optimization: the toyota way lean principles, waste elimination, management systems, and continuous improvement for building efficient, high-quality production. the goal a practical introduction to bottlenecks, throughput, and flow through the lens of theory of constraints. factory physics a rigorous foundation for understanding queues, variability, capacity, and the behavior of real production systems. the machine that changed the world a foundational book on lean production and the evolution of modern manufacturing systems. sources of increased efficiency in the dupont rayon plants a close look at industrial productivity, management, and operational efficiency inside a major american manufacturing system. phase 2: scaling & historical inspiration: freedom’s forge industrial mobilization, production scaling, and wartime coordination at national scale. my life and work firsthand perspective on mass production, vertical integration, simplification, and industrial philosophy. my years with general motors management, decentralization, strategy, and organizational design inside one of america’s great industrial firms. behemoth a history of giant factories and the role they played in shaping industrial civilization. arsenal of democracy the transformation of american industry toward war production, with lessons in speed, conversion, and manufacturing scale. the deindustrialization of america an account of industrial decline, disinvestment, and the structural forces that weakened american manufacturing. reindustrialization of america a period view on rebuilding industrial capacity and restoring productive strength in the united states. kochland a study of industrial power, corporate systems, and one of the most consequential private industrial empires in america. phase 3: strategic context & modern realities: chip war semiconductors, geopolitics, and the strategic importance of advanced industrial supply chains. apple in china a close look at supply chains, industrial concentration, manufacturing capability, and the strategic consequences of offshoring advanced production. made in the usa materials, energy, production systems, and the physical realities behind large-scale manufacturing. energy and civilization broad historical context on how energy systems underpin industrial growth and civilizational scale. where’s my flying car? a case for technological ambition, industrial acceleration, and the lost momentum of physical progress. science mart an examination of how science, markets, and institutions reshaped american innovation. discovery-driven growth a strategy framework for navigating uncertainty while building ambitious new ventures. phase 4: finance, economics & capital allocation: economics in one lesson a compact introduction to economic reasoning, incentives, and second-order effects. “the curse of machinery” is especially relevant for industrialists thinking about productivity, labor, and industrial progress. the outsiders capital allocation, CEO decision-making, buybacks, acquisitions, decentralization, and how exceptional operators think like owners. investment banking a practical guide to valuation, deal structure, and the financial mechanics behind acquisitions, leverage, and strategic transactions. distressed debt analysis credit, restructuring, downside analysis, and how to think through broken balance sheets and mispriced industrial assets. bonus: steelhead job shop playbook practical lessons on quoting, sales, operations, workforce, and growth for metal and job-shop businesses. ben einstein’s blog and writings practical lessons from hardware startups, manufacturing execution, and company building. skunk works lessons in innovation, speed, engineering culture, and rapid development under intense constraints.

This is what economic suicide looks like;

We just released our 2026 National Security Innovation Base Report Card! We graded the effectiveness and productivity of America’s NSIB ecosystem across 10 indicators. Here are a few highlights 🧵

@BrendanCarrFCC Damn. 🔥 Did @amazon vibe code that petition?

Amazon should focus on the fact that it will fall roughly 1,000 satellites short of meeting its upcoming deployment milestone, rather than spending their time and resources filing petitions against companies that are putting thousands of satellites in orbit.

.@steverod78 outlining the future of the Army at @tectonicdefense With Sam Spencer-Pittman, Army FUZE, Casey Perley, Executive Director AAL, and BG Anthony Gibbs, CPE Mission Autonomy

U.S. forces eliminated multiple Iranian naval vessels, March 10, including 16 minelayers near the Strait of Hormuz.