AI Data Center Construction Booms Worldwide, Faces Monumental Challenges

The construction of AI data centers (each housing thousands of specialized AI servers running the latest chips) is booming. Up to 100 gigawatts of new data centers are expected to be created between 2026 and 2030 (about double the current capacity). The new centers require massive amounts of power on a gigawatt scale to operate (making data centers responsible for as much as 12% of U.S. electricity usage by 2028). This immense need for electric power is outpacing grid capacity, causing increases in electricity user costs (even for residential consumers), as well as severe shortages in such areas as construction/installation labor, turbines and power control systems. This is spurring a “bring your own power” phenomenon. Due to multiyear wait times for grid connections, many developers are abandoning traditional purchasing from centralized electric power utilities. Instead, they are increasingly building their own on-site, behind-the-meter power plants, often relying on natural gas, to get projects running immediately. This is also challenging. While there is abundant natural gas in the United States, there is an acute shortage of pipelines and supply infrastructure. Some developers are planning to use newly developed, mini nuclear reactors for their power, while a few are investing in the reopening of mothballed major nuclear plants.

A chronic shortage has occurred of skilled construction workers who are adept at data centers’ complex infrastructures. This infrastructure includes specialized cooling systems, cabling, network gear and controls, and it is causing major disruption. As of 2025, 52% of companies building these data centers were experiencing delays. Construction spending continues to escalate to the extent that investors are concerned about a bubble in which overbuilding could lead to abandoned facilities once new centers open, if the current furor subsides.

Costs are staggering, with the biggest U.S.-based tech companies (Google, Meta, et al) investing as much as $600 to $700 billion worldwide in new capital expenditures during 2026. Many are forced to utilize debt markets, with up to $360 billion of new debt expected in 2026 alone, to be added to available cash flow in order to fund data center construction. However, many investors continue to believe in the long term, high yield prospects of this sector. Blackstone recently launched a dedicated public vehicle to acquire existing data centers.

Looking ahead, data centers are likely to shift from training large language models to the running of inference tasks against all of the accumulated data of those models. Inference is the process of gathering answers for users’ queries. This pivot may lead to additional development of a more geographically distributed network of smaller data centers for inference needs.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Become a Plunkett Research Online subscriber to gain unlimited access to our massive amount of vital industry data and market research.

✔ 100,000 Industry Statistics
✔ 500 Industries Analyzed for Market Size, Profits and Forecasts
✔ 150,000 Industry Executives Profiled
✔ 25,000 Companies Profiled, Ranked and Analyzed
✔ 1,000 Vital Trends Analyzed, totaling 1,000,000 words

Learn More

AI Data Center Construction Booms Worldwide, Faces Monumental Challenges, Business and Industry Trends Analysis

A Representative List of Organizations that Have Used our Research and Products:

How to access Plunkett Research data.

What data challenge can we help you solve today?

Take a Tour

Contact

Testimonials