Why access to power will determine the winners and losers in the AI race

Date:
Thu, 30 Jul 2026 13:36:21 +0000

Description:
As AI demand surges, electricity availability becomes a critical factor shaping data center growth worldwide.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter The AI race is usually framed
as a contest for chips, models and talent. Increasingly, it is being decided by something more basic: power.

The International Energy Agency (IEA) projects that electricity demand from data centers will double by 2030. At the same time, many grids are already under strain from increased electrification, ageing infrastructure and long permitting cycles. Latest Videos From TechRadar Watch full video here: Melton Chang Social Links Navigation

EVP Power Systems at Schneider Electric. This makes the ability to secure reliable electricity on a timeline that matches business plans a decisive factor in choosing where to build an AI data center. Time to power is
becoming a key constraint That is why time to power is quickly becoming the key metric in site selection. You may like Data centers, power and how to be
a winner in the AI Boom AI data centers are draining more power than the grid can provide Report claims power demands may halt AI data center advances soon

Schneider Electrics work in this space shows that in multiple regions, grid connection approvals and reinforcement timelines that were once manageable
now stretch far beyond normal development cycles.

In energy-constrained hotspots, the process to connect to the grid can extend for years, and in some cases can reach a decade or more. For large AI data center projects, that changes where data center operators build and how they build. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar
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The issue is not the lack of power. The real challenge is that data centers concentrate in specific regions, and those local grids hit capacity limits faster than new infrastructure can be planned, approved and built. When that happens, power availability starts to overtake location as the deciding factor. Transparency is key to attracting investment and ensuring resilience Power availability also influences where companies are investing when it
comes to building AI data centers as it is key to resilience. The most attractive markets are those that offer certainty and transparent information on available grid capacity and reinforcement plans.

Just as importantly, data center operators need confidence that grid connection queues are managed in a way that prioritizes projects that are ready to build, rather than allowing speculative projects to sit in line for years and block capacity. What to read next The five things governments must get right to attract AI investment Why AI is re-designing data center architecture Are we going to let data centers take all the power, water, and clean air?

Resilience has always been fundamental to data centers, but its now being redefined. It is no longer only about redundancy inside the facility; it is equally about resilience to the grid environment around it. In many energy-constrained regions, shrinking grid capacity and congestion increase the risk of outages and emergency grid measures. Hybrid power generation strategies offer an alternative to legacy grid dependence These pressures are driving many data center developers and owners to consider on-site hybrid energy strategies which combine on-site power generation from renewables with electricity provided by the grid.

Such hybrid power approaches are key for reducing reliance on legacy grid infrastructure and enabling data center operators to generate energy on-site and improve resilience. This also increases energy flexibility by allowing data center operators to change when and how energy is used, stored, or generated in response to demand, prices, or grid conditions.

A concept that is getting more attention in this space is energy parks. In simple terms, an energy park brings together multiple power resources, from renewables, thermal power, and storage to on-site generation, and connects them to the grid through a single point. These energy parks may connect to
the grid through a single interconnection point, operate as fully islanded systems, or combine both approaches through hybrid architectures.

Because the generation, storage and grid connection are designed together, energy parks can offer a faster or more predictable time to power in places where the traditional grid connection queue is a challenge. This could help alleviate the grid connection issue for many data center developers. A new approach to designing data centers This is where energy strategy becomes a design strategy. Developers need to plan across three key areas: how to connect, how to operate, and how to scale.

Connecting to the grid is now about getting the earliest possible clarity and avoiding prolonged delays. Operating is about building for an environment where grid constraints, curtailment risk and price shocks can impact business continuity. Scaling is about making sure a site that works at 50 MW does not become constrained at 150 MW because the upstream network cannot grow with
the campus.

But none of this can be separated from sustainability. Sustainable AI infrastructure at scale requires electrification strategy and grid modernization: faster grid reinforcement, better planning, and more flexibility on both the supply and demand sides. It also requires closer coordination between developers, grid operators, policymakers and clean
energy providers. This will help ensure that digital infrastructure growth is aligned with clean capacity additions and realistic delivery timelines.

For data center developers, the practical takeaway is straightforward: start with power and treat energy as a critical design variable. Build a site selection process that tests grid readiness and timelines before land is locked in, and design an energy strategy that covers connection, resilience and scale from day one.

When it comes to attracting AI infrastructure investment, the winners will be those that can offer speed and certainty on grid connection and
reinforcement, and enable credible pathways to clean, resilient power. Best web hosting services: 60 sites tested to find the 10 fastest, most reliable platforms. This article was produced as part of TechRadar Pro Perspectives , our channel to feature the best and brightest minds in the technology
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