Time to Power: The New Competitive Advantage for Manufacturers
Manufacturers face growing delays and costs for grid power as data centers, driven by AI demand, strain utilities. A new report highlights shifting power dynamics and urges industrial operators to reconsider energy strategies.
Manufacturers traditionally relied on predictable grid connections, but utilities now struggle with a 30% increase in backlogs, largely due to data center expansion fueled by AI growth. The U.S. IT services power load is projected to nearly double from 82 gigawatts in 2025 to 153 gigawatts by 2028, intensifying competition for limited grid capacity. Utilities in regions like Northern Virginia, the San Francisco Bay Area, and Atlanta are falling behind, with power delivery timelines lagging expectations by up to two years.
Data center developers, particularly hyperscalers such as Amazon Web Services, Google, Meta, Microsoft, and Oracle, are accelerating projects to secure power faster. By 2030, one in five data centers is expected to exceed 1 gigawatt of consumption, reshaping regional power markets. Texas is poised to lead with 30% of national data center capacity by 2028, while states like California and Oregon face declining market share, leaving manufacturers in those areas with fewer options and higher costs.
Manufacturers are advised to explore alternative strategies, including relocating to regions with slower data center growth, such as Mississippi, Indiana, or Tennessee, where interconnection competition is lower. Alternatively, onsite power generation, including fuel-cell systems, offers greater control over energy supply, reducing reliance on grid interconnection queues and mitigating price volatility in constrained markets.
The shift toward onsite power reflects a broader trend among large-load sectors, with one-third of hyperscalers planning to operate entirely off-grid by 2030. Industrial operators are increasingly prioritizing power strategy early in planning to avoid delays and rising costs. The Bloom Energy 2026 Data Center Power Report underscores the urgency for manufacturers to act now to secure reliable and cost-effective energy solutions amid rapidly evolving market conditions.