US power companies scramble to secure equipment as surging data center demand strains supplies

AI data-center demand is straining U.S. transformer supply, pushing up equipment costs and extending grid interconnection/installation wait times. Utilities and developers are responding by locking in orders far in advance, indicating a higher likelihood of near-term project delays and cost pressures across the grid buildout.

Analysis

AI data-center demand is straining U.S. transformer supply, pushing up equipment costs and extending grid interconnection/installation wait times. Utilities and developers are responding by locking in orders far in advance, indicating a higher likelihood of near-term project delays and cost pressures across the grid buildout.