<cite index="44-3">Analysis presented to PJM Interconnection governors warns of a 49 GW US generation shortfall by 2028—roughly equivalent to 49 large natural gas power plants—resulting from simultaneous data center demand growth, retirement of aging generation, and interconnection delays stretching to seven years</cite>. <cite index="41-2,41-3">The defining risk for AI data center expansion has shifted from computational efficiency to physical power availability; a single AI-related task consumes up to 1,000 times more electricity than a traditional web search, and analysts predict power shortages will restrict 40% of AI data centers by 2027</cite>.
<cite index="46-1,46-4">AI-optimized racks demand 30–100+ kW compared to 5–15 kW for traditional racks; wholesale electricity costs near U.S. data centers rose 267%, forcing grid interconnection delays to exceed three years as a primary business risk</cite>. <cite index="44-4">PJM capacity market prices spiked nearly tenfold, with capacity cost increases alone driving retail electricity price jumps above 15% in some service territories</cite>.
<cite index="46-2,46-4,46-5">Data center operators are shifting from relying on grid-supplied power to direct investment in dedicated on-site generation—a 'bring your own power' (BYOP) model—through partnerships with energy producers like Bloom Energy and fuel cells</cite>. <cite index="45-1">A 5-year backlog on grid transformers has impacted half of announced 2026 AI data center capacity; 11 GW of 2026 U.S. data center capacity remains in announced phase without construction underway</cite>.
For practitioners: <cite index="48-3">The most acute grid stress now appears in Northern Virginia, parts of Texas, Ireland, and pockets of East Asia, where local interconnection queues and substation capacity already constrain new builds</cite>. Power procurement is no longer a utility cost line item—it is now a critical site-selection and financing parameter. Budget 18–36 months for grid interconnection timelines, price in fuel-cell or SMR co-location as contingency, and expect continued geographic bifurcation of AI infrastructure toward regions with independent power generation.