Delays in US Data Center Construction Due to Shortage of Power Components
Nearly half of data center projects in the US have been paused or canceled. The main reason is a shortage of electrical components: transformers, switchgear, and batteries. Despite investments of hundreds of billions of dollars, construction is stalling due to power supply constraints.
The power grid infrastructure is overloaded by electric vehicles and electric heating systems. According to Sightline Climate estimates, 12 GW of data center capacity is planned for 2026, but only a third of that volume will be realized.
The Role of Power Infrastructure in Project Costs
Electrical infrastructure accounts for less than 10% of data center capex, but it's as critical as the computing equipment. A delay in any link of the supply chain—transformers, switchgear, or batteries—paralyzes the entire project.
Lead times for large power transformers have skyrocketed: from 24–30 months pre-2020 to 5 years now. For AI data centers with deployment cycles under 18 months, this is unacceptable.
Global Sources of Components
Companies are turning to imports to compensate for the shortage:
- Canada, Mexico, and South Korea are key suppliers of transformers for AI data centers.
- Imports of large transformers from China: from <1500 units in 2022 to >8000 in 2025 (Wood Mackenzie).
- China supplies >40% of battery imports and ~30% of transformers/switchgear in the US.
Instability in Chinese exports exacerbates supply chain risks.
Shortage of Power Sector Workers
The US will need 500,000 electricians to support data centers and power grids. Current shortages of skilled specialists are slowing not only data centers but also overall infrastructure modernization.
Power bottlenecks are dictating the pace of digitalization. AI system developers must factor in infrastructure delays during planning, integrating supply forecasting models.
Key Points
- Half of data center projects delayed: shortage of transformers, switchgear, and batteries blocks 2/3 of the 12 GW capacity planned for 2026.
- Transformer lead times up to 5 years: a critical factor for AI data centers with fast deployment cycles.
- Reliance on imports: rising supplies from China (8000+ transformers in 2025), Canada, Mexico, and South Korea.
- Electrician shortage: 500,000 specialists needed for data centers and grids.
- Power infrastructure <10% of capex, but it determines project success.
— Editorial Team
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