Financial service biz Moody's says the availability of power is still a major constraint on US datacenter growth as the pace of construction exceeds the speed at which the nation's grid infrastructure can add the requisite capacity. America is the epicenter of the datacenter construction boom, driven by the AI craze and demand for compute capacity to train ever-larger foundation models. The latest report from Moody's estimates the power needed by all those bit barns will reach 426 terawatt-hours (TWh) in 2030, citing data from the International Energy Agency (IEA). That is almost double the 2025 figure. It falls on the power sector to develop new resources to meet this extra demand as traditional power generation is struggling to keep pace. Moody's calculates that building the additional generation capacity will cost about $110 billion, adding an estimated $25 billion to $30 billion a year to electricity system costs. Yet efforts to supply the rapidly growing number of cloud and AI server farms are running up against lengthy permitting processes and long lead times for key equipment and materials, causing delays of up to seven years in some cases. Management consultancy Bain & Company highlighted the problem nearly two years ago when it warned that energy companies needed to significantly boost their generation capacity, reversing years of flat or declining demand. Transmission buildout is a parallel bottleneck, with $80 billion to $115 billion in grid investment through 2030 already approved or under construction across US power markets, Moody's says, with the potential to triple over the next decade. Investment bank Jefferies reported in June that half of the extra US datacenter capacity planned for 2026 is unlikely to come online this year, blaming power availability and grid connection setbacks, along with other issues including zoning and permitting challenges. Regions able to accelerate development, such as Texas, have experienced a wave of datacenter construction. The resulting pressure on local grids has prompted some authorities to clamp down on new connections for compute sheds. Moody's believes most new IT campus operators are still likely to seek grid connections to limit development costs and benefit from service reliability and shared redundancy. Yet many are also seeking alternatives, including on-site behind-the-meter (BTM) power generation to avoid delays in bringing facilities online. The document also notes that the growing energy demands from server farms are inflating power prices and customer bills in some regions of America, as The Register reported earlier this year. This has led to affordability concerns, fueling opposition to datacenters and prompting measures such as stricter approval frameworks and moratoriums on new projects. President Trump even introduced a Ratepayer Protection Pledge, under which tech giants and energy companies committed to shielding consumers from rising energy costs due to the datacenter boom. In the long term, Moody's believes that large-scale infrastructure investment will ultimately strengthen grid reliability and affordability, despite the risks. Extra generation capacity will alleviate longstanding supply constraints, it says, reducing price volatility during periods of extreme weather or high demand, while expanded transmission networks could improve access to lower-cost generation resources, particularly when datacenter developers or their tenants help finance the associated infrastructure. ®
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