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Deliverable Power, Not Chips, Is Slowing AI Data Center Buildouts

Grid connection delays plus long equipment lead times are pushing operators to rely on onsite generation and storage to bring projects online.

Overview

  • Grid delivery and interconnection processes are now the main bottleneck for new AI data centers, producing measurable project delays and cancellations.
  • Global electricity use by data centers is projected to roughly double by 2030, and US demand forecasts have climbed to about 66 gigawatts in the near term.
  • Developers are turning to non‑grid options such as onsite natural‑gas generation, battery storage and small modular reactor offtakes to secure firm, always‑on power.
  • Supply chains are straining the rollout because transformer and cable lead times have roughly doubled and new transmission builds can take years to complete.
  • Local opposition, stalled projects in places like Virginia and California, and growing utility and legislative scrutiny are raising the risk that consumers could face higher costs to fund network upgrades.