Nearly half of the data centres expected to come online in the United States by 2026 are likely to face delays or cancellations. This may come as a shortage of key electrical infrastructure begins to constrain the country’s expansion of artificial intelligence (AI). Despite aggressive investments from companies such as Google-parent Alphabet, Amazon, Meta, and Microsoft, which have collectively committed over $650 billion this year, the bottleneck lies not in funding or computing technology, but in the availability of transformers, switchgear, and batteries required to power these facilities. According to a Bloomberg report, analysts estimate that while projects consuming up to 12 gigawatts of power are planned, only about a third are currently under construction, underscoring a widening gap between ambition and execution.
Electrical equipment shortage disrupts US AI data centre expansion
The basic problem hindering the development of data centres is the scarcity of electrical equipment needed to supply power to the centres and to extend the network grid, according to the study. This equipment includes transformers for voltage control, switchgear for power distribution, and batteries to balance power consumption.“There’s not enough domestic capacity to go around, so people are pretty much forced to go to the export market,” says Benjamin Boucher, senior analyst at Wood Mackenzie.The shortage is being driven by overlapping demand. Electrification efforts, such as electric vehicles and heat pumps, are competing with AI infrastructure for the same equipment. As a result, US manufacturers are struggling to keep pace, forcing developers to depend on imports, particularly from China and other countries.According to data from the US International Trade Commission, imports of major electrical equipment have surged in recent years, coinciding with the rapid expansion of AI data centre projects. In some cases, delivery timelines for high-capacity transformers have stretched from 24–30 months before 2020 to as long as five years today, reflecting both supply constraints and rising demand.The dependence on imports has led to several problems in both strategic and operational terms. US President Donald Trump highlighted the significance of competitiveness as early as December 2025, when he said, “There will be only one winner, and that will most likely be the US or China.” Nevertheless, any trade strategy aimed at reducing import dependency could create problems for them.“Even a small delay in getting any of the components you need to construct your well can stall your entire project,” Andrew Likens, head of energy and infrastructure at Crusoe, was quoted as saying by Bloomberg. “It’s a really wild puzzle right now,” he added.These circumstances have pushed companies to try some non-traditional approaches. Companies that develop new projects order their equipment well before final approval, while others refurbish old transformers from defunct energy facilities. For instance, Crusoe Company decided to rely on domestic procurement and assembly to prevent disruptions to its plans.However, the United States’ attempt to strengthen its manufacturing capacities has been unsuccessful. The reshoring measures adopted over the past 10 years have failed to meet the increasing demand; hence, the country relies on imported equipment.According to Wood Mackenzie, in 2025, thousands of high-capacity transformers will have been imported to the US from China alone. Despite large sums of money being invested by companies like GE Vernova and Siemens Energy to enhance their production capacities, the effort is not expected to address the existing problem in the short run. In addition, lithium-ion batteries, yet another important component, continue to be imported mostly from China at a rate of over 40%.Experts warn that unresolved supply constraints could undermine the broader AI build-out. “We’ve seen firsthand the value it can create if you are not hamstrung by electrical infrastructure lead times. They can make or break a project,” Likens said.This chasm between the ambition of artificial intelligence and the system’s ability to fulfil it is a structural challenge that confronts America. While it remains dominant in the advanced circuits and programming software, it might not be able to procure enough electronics, which could jeopardise its position in the global AI race.
