Onsite Power, New Geographies Will Dominate Data Center Market by 2028
Data center developers are shifting to onsite power and new geographies by 2028 due to grid delays, with AI-driven demand doubling power needs to 153 GW by 2028, according to Bloom Energy’s 2026 report.
The useful question is what changes for users, developers or buyers, and whether the announcement stays industry context or becomes something people can actually use.
Data center projects face delays as utilities struggle to supply grid power, with timelines extending 1.5 to 2 years beyond hyperscalers’ expectations. Bloom Energy’s 2026 Data Center Power Report highlights that time to power has become the primary constraint, prompting developers to prioritize regions like Texas and the Southeast where permitting and natural gas access are more favorable. The report notes that legacy markets risk losing market share as companies relocate to areas with faster power availability.
The surge in AI workloads is accelerating power demand, with McKinsey projecting data center power loads to nearly double from 82 GW in 2025 to 153 GW by 2028. To meet these needs, developers are adopting onsite power solutions, including fuel cells, rather than relying solely on grid connections. By 2030, one-third of data centers are expected to operate entirely on onsite power, marking a shift from temporary backup to primary power sources.
Next-generation data center designs are evolving to support higher power densities, with gigawatt-scale campuses becoming more common. By 2030, one-fifth of data centers will require at least 1 GW of power, comparable to a mid-size city’s peak consumption. New architectures, such as high-voltage busways and direct current systems, are being implemented to improve efficiency and deployment speed, addressing the limitations of traditional grid-dependent designs.
Bloom Energy’s report underscores a 33-fold increase in the number of industry leaders considering onsite power as the standard for data centers. Nearly half of these leaders are exploring fuel cell technologies for primary power generation. The findings reflect a broader industry trend toward self-sufficiency, with developers accelerating adoption of onsite power and new geographies to maintain competitiveness in the rapidly evolving data center market.