Overview
- Nearly half of U.S. data centers planned for 2026 face delays or cancellations because developers cannot source high-capacity transformers, switchgear, or batteries, with lead times stretching to five years and domestic supply falling short, according to Bloomberg reporting cited by multiple outlets.
- On-site energy “islands” are gaining traction, with Cleanview estimating 30% of planned capacity will run on dedicated power as Axios reports Chevron working on a natural gas plant for a Microsoft site in Texas and Meta funding gas plants, transmission lines, and batteries for a massive Louisiana campus.
- Battery storage is scaling as the main pressure valve, with 24.3 GW of additions planned in 2026 and a DTE deal for 1.4 GW of storage designed to speed a hyperscale data center’s interconnection in Michigan.
- Utilities are reworking plans to serve the surge, as Dominion and CenterPoint lift multi-year spending and PJM warns of future supply shortfalls that could threaten reliability as soon as 2027.
- Regulators are pushing fixes for large-load hookups, including a FERC rulemaking on joint load-plus-generation interconnections and new state pilots, while opposition grows through a proposed federal pause and a Maine bill to halt new builds over costs, grid strain, and local heat risks.