The Department of Energy expects domestic energy usage from data centers to double or triple by 2028. As the data center industry works to meet surging energy demands driven by the AI boom, a new survey of executives across the United States and Canada shows how the sector is adapting.
Commissioned by AlphaStruxure and Schneider Electric in partnership with Data Center Frontier, the study explores the industry’s growing struggles with power grid constraints and an emerging shift toward alternative energy strategies. The survey, conducted between January and February 2025, polled 149 data center executives and revealed a growing “time to power” crisis: nearly half of respondents reported utility wait times for additional power exceeding four years.
Grid constraints
The number one obstacle to new data center development today is grid constraints, according to 92% of respondents. Within that challenge, long wait times for utility hookups ranked as the top pain point.
“These first-of-their-kind findings show the breadth and depth of the energy demand crisis,” said AlphaStruxure CEO Juan Macias. “It won’t be long before compounding grid stress, increasing energy rates, and lost economic opportunities have noticeable impacts for everyday consumers.”
With grid access uncertain, many data center executives are rethinking their energy strategies. Six in ten respondents reported that they would deploy on-site generation systems if grid access presented concerns, with solar energy and battery storage ranking as the top choices for on-site power.
“This survey data aligns with the demand we’re seeing for electricity, automation, and digitization, with much of this driven by exponential data center development,” said Vandana Singh, Schneider Electric senior vice president of secure power. “To ensure our nation’s energy grid can keep pace with demand from data centers, utilities and developers must coordinate and collaborate to develop solutions that can both power our future and keep our nation’s energy supply secure.”
The full survey results are available through AlphaStruxure.
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Hayden Beeson
Hayden Beeson is a writer and editor with over seven years of experience in a variety of industries. Prior to joining Lightwave and Broadband Technology Report, he was the associate editor of Architectural SSL and LEDs Magazine.