The rapid expansion of artificial intelligence data centers is encountering a significant obstacle: insufficient capacity on electrical grids to support them. According to industry projections, AI-related infrastructure spending could exceed $5 trillion by 2030, with data center capacity demand reaching 100 gigawatts, according to McKinsey and JLL estimates cited by Charles Kennedy on OilPrice.com. Utilities across North America and Europe report multi-year waits for interconnection studies and transformer deliveries, delaying server activation.
A growing shortage of large power transformers is delaying grid expansion projects across the United States, according to a report [1]. The Wood Mackenzie report projects that U.S. spending on power generation equipment for data centers could reach $65 billion by 2030, more than tripling the $20 billion recorded in 2025 [2]. Seven major U.S. grid operators warned Congress of an impending electricity capacity crisis, citing surging demand from data centers, AI, electrification, and economic growth outpacing infrastructure development [3]. The trend echoes observations in Jeff Dondero’s “Supercities,” which notes that peak-demand power plants are expensive to operate and that there is a great demand for cheaper solutions like smart energy systems to ease strain on the grid [4].
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