Five years ago, power was rarely the defining constraint in data center development. Today, it is often the first—and most important—question determining whether a project moves forward.
Land, incentives, and fiber still matter, but they no longer set the pace.
What has changed is the speed and shape of demand. The acceleration of AI and high-density compute has fundamentally shifted how infrastructure is planned and delivered. Capacity requirements are scaling faster than the systems built to support them.
Across the industry, we see the same pattern: projects that look viable on paper but stall when it comes time to secure and deliver power.
A STRUCTURAL CONSTRAINT, NOT A TEMPORARY SHORTAGE
This is not simply a supply issue—it is a structural one.
In many regions, generation capacity has not kept pace with demand. Interconnection queues are backed up, and projects can remain in study phases for years. Even when capital is available, timelines for new generation or grid upgrades are measured in years, not quarters.
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ABOUT THE AUTHOR
Jarrett Appleby is Founder and CEO of ASG, with more than 30 years of leadership across global data centers, telecommunications, and digital infrastructure. He currently advises the Blackstone Group on investments in data center platforms, fiber infrastructure, and the emerging intelligent edge ecosystems. He has held senior roles at Digital Realty, CoreSite, Equinix, and Reliance Communications, and advises on market strategy and transaction execution.
