Data Center Power Demand Surge

There is a significant and growing demand for data center power, driven largely by the rise of artificial intelligence and the expansion of cloud services by major players such as AWS, Google, and Microsoft. A forecast indicates that over 10 gigawatts of new data centers will need to be constructed next year, yet only about 5 gigawatts are currently being built. The primary constraint on this growth is the limited availability of power and the challenges associated with connecting new data centers to the electrical grid. In particular, some markets, like Virginia, are reporting connection timelines that could stretch up to seven years, which presents a major hurdle for timely data center expansion.