What it is
CBRE reports that North American data center construction capacity fell 5.5% to 5,994.4MW in 2025 despite record demand, due to extended timelines for permits, zoning, and power sourcing. Grid power capacity is largely booked through 2030, driving projects toward onsite generation including natural gas, solar+batteries, and future SMRs expected by 2035.
Why it matters
Power availability has shifted from a design input to the primary construction gating factor for data center developers. Owner-operators and facilities teams must now plan for onsite generation (natural gas, solar+battery, future SMR) rather than grid interconnect, fundamentally changing infrastructure design, permitting strategy, and project timelines through 2030.
Evidence from source:
- Capacity under construction fell to 5,994.4MW, a decline of 5.5% vs. 2024, due to extended timelines for permitting, zoning approvals, and sourcing adequate power
- Grid power capacity is ’largely booked’ through 2030; new projects looking at onsite power generation (natural gas, wind, hydrogen fuel cells, solar+batteries)
- Facilities optimized for AI with liquid cooling and high power density racks commanded rental premiums; 3MW-10MW requirements saw 12.5% price surge
Links
- Canonical source: https://www.cio.com/article/4141401/data-center-new-builds-diminish-even-as-demand-rises-2.html
- Player: /players/other/
- Topic: /topics/schedule-value/
- Topic: /topics/pathways-install/
Open questions
- What permitting and code pathways are municipalities establishing for onsite generation vs. grid interconnect?
- How are AI-optimized facilities with liquid cooling and high-density racks changing power distribution and UPS sizing requirements?