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The 20 percent problem: why data center sites fail before they’re built

The United States is facing an issue with its data centers. Approximately 50% of the scheduled construction projects for these data centers are either being held back or completely terminated. Nevertheless, the reason behind this isn’t due to limitations in land or capital.

The availability of power is causing issues in constrained markets. Developers are encountering power shortages, making numerous projects unfeasible. Nevertheless, the distance between power deficiency and project accomplishment is gradually narrowing.

It can be asserted that ensuring adequate electrical grid capacity is arguably the primary objective for planned data center initiatives. Currently, throughout the United States, data centers have a cumulative capacity of approximately 300GW. By the year 227, there will be a demand for an extra 2038GW of capacity in new data centers.

What’s the problem? By then, the grid will be able to provide a maximum of 22,026 gigawatts.

 

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