Overview
- Gartner forecasts global data center electricity use will jump 26% in 2026 to about 565 TWh and says AI‑optimized servers will consume more power than conventional servers by 2027.
- Bank of America analysts estimate the United States could face roughly a 100‑gigawatt generation shortfall between 2026 and 2030 and identify where power can actually be delivered as the binding constraint on growth.
- Developers are turning to on-site power plants such as natural‑gas turbines and battery storage to meet immediate needs, but suppliers report turbine capacity is essentially sold out through 2030 and delivery plus interconnection can take years.
- Major cloud firms have signed long‑lead deals for resources including nuclear and small modular reactors, yet those projects are not expected to come online before 2028 and therefore will not ease the near‑term supply bottleneck.
- The combined effect is widespread project delays, higher local utility pressure and rates, and increased risk that planned data centers will be scaled back, postponed, or canceled while grid upgrades and supply‑chain fixes take multiple years.