Power constraints and potential grid equipment shortages are set to delay 30% to 50% of data center projects in 2026, as some hyperscalers weigh the benefits of pursuing on-site power generation instead, a new Sightline report found.
Delays are already a familiar occurrence: Last year, 110 data center projects were planned to come online, but 26% were delayed and 10% quietly revised their target operation dates, a trend that has pushed some hyperscalers to take on the headache of building their own power capacity rather than relying on the grid. Google recently acquired energy group Intersect Power, giving the tech giant a direct energy lifeline at a time when it’s competing with rivals to train and run power-hungry AI models.
Microsoft, meanwhile, is taking a different approach: Last year it cancelled leases and announced smaller data centers than some of its peers, prioritizing grid stability in surrounding areas, including by restarting large nuclear power plants.
