America is building data centers but the grid to power them can't keep up — and it could cause significant energy constraints

• US data center energy consumption could top 426 TWh by 2030
• Grid expansions are delayed while new data center projects keep getting approved
• New report reveals how energy transmission could be just as important as new generation

New Moody's data (via The Register) has revealed that US data center construction is ramping up so quickly, the country's grid isn't able to keep up.

With power availability quickly becoming one of the biggest constraints on future projects, the report claims that roughly $110 billion of new electricity generation capacity could be required.

By the end of the decade, the electricity consumption for America's data centers alone could top 426 TWh.

Power supply is one of the biggest data center constraints

The data shows that new campuses can be developed much more quickly than new grid infrastructure, with power projects facing lengthy planning phases, long lead times on equipment and supply chain issues. According to the report, some projects face delays of up to seven years.

Canada's Saskatchewan is one example of how a region can tackle power issues, because the province requires large new facilities to supply their own power.

Moody's says the US grid system should also consider transmission infrastructure to move electricity to data center clusters – not just building capacity for additional generation. That additional transmission infrastructure could also provide rural communities with access to cheaper energy that's been generated further afield, making it a win-win.

Some US states and regions have even been forced to put a temporary ban on certain new projects as they take a step back to reassess legislation.

While President Trump's Ratepayer Protection Pledge does aim to shift the responsibility onto utility companies in order to protect citizens from bearing the brunt of rising costs, Moody's ultimate conclusion is that data center projects are coming in at an accelerated rate, and it's clear that the grid needs additional support from the likes of those operators in order to deliver campuses on time.

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