U.S. Data Center Power Equipment Spending Forecast to Reach $65 Billion by 2030

U.S. spending on power generation gear for data centers could reach $65 billion by 2030, more than tripling the $20 billion spent last year, according to a report from Wood McKenzie that @zerohedge reported. Data center capacity is forecast to hit 110 gigawatts by the end of the decade, the report states.

U.S. spending on power-plant equipment may climb to $215 billion. Lead times for transformers, switchgear, and related gear now stretch from 18 to 36 months, @zerohedge reported. Much of the shortfall in power equipment is filled by imports from China.

The administration issued a massive stack of Defense Production Act orders in April to address these supply chain issues. U.S. data center capacity slated to break ground in 2026 now faces delay or outright cancellation, according to Sightline Climate data highlighted by @zerohedge.

U.S. data center capacity sit under active construction, Sightline Climate reported. PJM is scrambling for 15 gigawatts of new supply to feed hyperscaler loads. Data centers helped trigger capacity auction price spikes.

Hyperscalers are increasingly turning to behind-the-meter solutions, including small nuclear reactors or gas-fired generation directly on site. Brookfield has a nuclear-tied cloud venture. Nano Nuclear is conducting modular reactor studies.

Talen Energy has direct hookups. The Ratepayer Protection Pledge was signed in March. The Ratepayer Protection Pledge pushed hyperscalers to build, bring, or buy their own power and cover every dollar of the new transmission and distribution infrastructure.

The White House has described rapid AI infrastructure development as a national security priority, comparing it to a modern arms race, amid debates over its energy demands and costs.