Data Center Buildout Puts Pressure on Power Infrastructure, Input Costs
Our Privacy Policy has been updated! The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "ACCEPT", you acknowledge our privacy policy and consent to the use of cookies. 
Our Privacy Policy has been updated! Detailed information on the use of cookies on this site is provided in our cookie policy and our privacy policy. 
TCB Tourch
Loading...
  •  
    • NORTH AMERICA
    • EUROPE
    • ASIA

  • 2

    Close
    • Insights
        • Insights
        • Explore by Center
          • Explore by Center

          • CED
            Committee for Economic Development

          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications
        • Explore by Content Type
          • Explore by Content Type

          • Reports

          • Upcoming Webcasts

          • On Demand Webcasts

          • Podcasts

          • Charts & Infographics

          • Explore All Research

          • Economic Indicators
        • Trending Topics
          • Trending Topics

          • Artificial Intelligence (AI)

          • Navigating Washington

          • Geopolitics

          • US Economic Forecast

          • Sustainability

          • Future of Work

          • Explore All Trending Topics

    • Events
        • Events
        • Upcoming Events
          • Upcoming Events

          • Organizational Transformation: Where Change Meets the Human Experience

          • CHRO Summit: Turning Uncertainty into Growth

          • CHRO Summit: People First Awards Dinner

          • Reimagine Asia 2026: People & Business

          • CLO Governance Forum

          • Executive Compensation & Talent: Navigating New Expectations, New Metrics, New Models

          • Explore All Upcoming Events

          • Speaker Bureau

          • Sponsor a Program

        • Member-Exclusive Programs
          • Member-Exclusive Programs

          • Center Briefings

          • Expert Briefings

          • Experts Live

          • Roundtables

          • Working Groups

          • View All Member-Exclusive Programs

          • View All Upcoming Events, Programs, and Webcasts

    • Data
        • Data

        • All Data

        • Consumer Confidence Index®

        • Data Central

        • TCB Benchmarking

        • Recession & Growth Trackers

        • Global Economic Outlook

        • Leading Economic Indicators

        • Help Wanted OnLine

        • Labor Markets

        • Measure of CEO Confidence

        • CMO+CCO Meter Dashboard

    • Centers
        • Centers
        • Our Centers
          • Our Centers

          • Committee for Economic Development

          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications
    • Councils
        • Councils
        • Find a Council
          • Find a Council

          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications

          • Explore All Councils

        • Council Membership
          • Council Membership

          • What is a Council?

          • Benefits of Council Membership

          • Apply to a Council

    • Membership
        • Membership
        • Types of Membership
          • Types of Membership

          • Membership at a Glance

          • Executive

          • C-Suite

          • Leadership Team

          • Council

          • Higher Education

          • Insights

        • Already a Member?
          • Already a Member?

          • Check if Your Organization is a Member

          • Sign In to myTCB®

          • Executive Communities

          • Member-Exclusive Programs

          • Refer a Leader - Earn a Reward

    • About Us
        • About Us
        • Who We Are
          • Who We Are

          • About Us

          • In the News

          • Press Releases

          • Our History

          • Support Our Work

          • Locations

          • Contact Us

        • Our Community
          • Our Community

          • Our Leadership

          • Our Experts

          • TCB Speaker Bureau

          • Trustees

          • Voting Members

          • Global Counsellors

          • Careers

          • This Week @ TCB

          • Continuing Education Credits (CEUs)

    • Careers
    • This Week @ TCB
    • Sign In to myTCB®
      • NORTH AMERICA
      • EUROPE
      • ASIA
    • Insights
      • Insights
      • Explore by Center
        • Explore by Center

        • CED
          Committee for Economic Development

        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

      • Explore by Content Type
        • Explore by Content Type

        • Reports

        • Upcoming Webcasts

        • On Demand Webcasts

        • Podcasts

        • Charts & Infographics

        • Explore All Research

        • Economic Indicators
      • Trending Topics
        • Trending Topics

        • Artificial Intelligence (AI)

        • Navigating Washington

        • Geopolitics

        • US Economic Forecast

        • Sustainability

        • Future of Work

        • Explore All Trending Topics

    • Events
      • Events
      • Upcoming Events
        • Upcoming Events

        • Organizational Transformation: Where Change Meets the Human Experience

        • CHRO Summit: Turning Uncertainty into Growth

        • CHRO Summit: People First Awards Dinner

        • Reimagine Asia 2026: People & Business

        • CLO Governance Forum

        • Executive Compensation & Talent: Navigating New Expectations, New Metrics, New Models

        • Explore All Upcoming Events

        • TCB Speaker Bureau

        • Sponsor a Program

      • Member-Exclusive Programs
        • Member-Exclusive Programs

        • Center Briefings

        • Expert Briefings

        • Experts Live

        • Roundtables

        • Working Groups

        • View All Member-Exclusive Programs

        • View All Upcoming Events, Programs, and Webcasts

    • Data
      • Data

      • All Data

      • Consumer Confidence Index®

      • Data Central

      • TCB Benchmarking

      • Recession & Growth Trackers

      • Global Economic Outlook

      • Leading Economic Indicators

      • Help Wanted OnLine

      • Labor Markets

      • Measure of CEO Confidence

      • CMO+CCO Meter Dashboard
    • Centers
      • Centers
      • Our Centers
        • Our Centers

        • Committee for Economic Development

        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

    • Councils
      • Councils
      • Find a Council
        • Find a Council

        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

        • Explore All Councils

      • Council Membership
        • Council Membership

        • Benefits of Council Membership

        • Apply to a Council

        • Our Program Directors

        • Refer a Leader - Earn a Reward

    • Membership
      • Membership
      • Types of Membership
        • Types of Membership

        • Membership at a Glance

        • Executive

        • C-Suite

        • Leadership Team

        • Council

        • Higher Education

        • Insights

      • Already a Member?
        • Already a Member?

        • Check if Your Organization is a Member

        • Sign In to myTCB®

        • Executive Communities

        • Member-Exclusive Programs

        • Refer a Leader - Earn a Reward

    • About Us
      • About Us
      • Who We Are
        • Who We Are

        • About Us

        • In the News

        • Press Releases

        • This Week @ TCB

        • Our History

        • Support Our Work

        • Locations

        • Contact Us

      • Our Community
        • Our Community

        • Our Leadership

        • Our Experts

        • TCB Speaker Bureau

        • Trustees

        • Voting Members

        • Global Counsellors

        • Careers

        • This Week @ TCB

        • Continuing Education Credits (CEUs)

    • Careers
    • Sign In to myTCB®
    • Download TCB Insights App
  • Insights
    Insights

    Our research and analysis have helped the world's leading companies navigate challenges and seize opportunities for over 100 years.

    Economic Indicators

    • Explore by Center
    • CED
      Committee for Economic Development
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
    • Explore by Content Type
    • Reports
    • Upcoming Webcasts
    • On Demand Webcasts
    • Podcasts
    • Charts & Infographics
    • Trending Topics
    • Artificial Intelligence (AI)
    • Navigating Washington
    • Geopolitics
    • US Economic Forecast
    • Sustainability
    • Future of Work
    • Explore All Trending Topics
  • Events
    Events

    Our in-person and virtual events offer unmatched opportunities for professional development, featuring top experts and practitioners.

    View All Upcoming Events, Programs, and Webcasts

    TCB Speaker Bureau

    Sponsor a Program

    • Upcoming Events

      • Organizational Transformation: Where Change Meets the Human Experience

      May 14 - 15, 2026

      CHRO Summit: Turning Uncertainty into Growth

      June 03, 2026

      CHRO Summit: People First Awards Dinner

      June 03, 2026

    •  

      • Reimagine Asia 2026: People & Business

      September 09, 2026

      CLO Governance Forum

      September 10, 2026

      Executive Compensation & Talent: Navigating New Expectations, New Metrics, New Models

      September 24 - 25, 2026

    • Member-Exclusive Programs
    • Center Briefings
    • Expert Briefings
    • Experts Live
    • Roundtables
    • Working Groups
    • View All Member-Exclusive Programs
    • Explore by Type
    • Events
    • Webcasts
    • Podcasts
    • Member-Exclusive Programs
    • Center Briefings
    • Expert Briefings
    • Experts Live
    • Roundtables
    • Working Groups
    • View All Member-Exclusive Programs
  • Data
    Corporate Disclosure Data

    TCB Benchmarking

    Real-time data visualizations to benchmark your governance, compensation, environmental, human capital management (HCM) and social practices against US public companies.

    Economic Data

    All Data

    Consumer Confidence Index®

    Data Central

    One-stop, member-exclusive portal for the entire suite of indicators

    Labor Markets

    Measure of CEO Confidence

     

    Recession & Growth Trackers

    Current & future state of 16 economies

    Global Economic Outlook

    Growth outlooks for 77 economies

    Leading Economic Indicators

    State of the business cycle for 12 global economies across Asia and Europe

    Help Wanted OnLine

    Status of the US job market

    Other Featured Data

    CMO+CCO Meter Dashboard

  • Centers
    Centers

    Centers offer access to world-class experts, research, events, and senior executive communities.

    Our Centers
    • Committee for Economic Development
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
  • Councils
    Councils

    Councils are invitation-only, peer-led communities of senior executives that come together to exchange knowledge, accelerate career development, and advance their function.

    Find a Council
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
    • Explore All Councils
    Council Membership
    • Benefits of Council Membership
    • Apply to a Council
    • Our Program Directors
    • Refer a Leader - Earn a Reward
  • Membership
    Membership

    Membership in The Conference Board arms top executives and their teams with an arsenal of knowledge, networks, and expertise that's unmatched in scope and depth.

    • Types of Membership
    • Membership at a Glance
    • Executive
    • C-Suite
    • Leadership Team
    • Council
    • Higher Education
    • Insights
    • Already a Member?
    • Check if Your Organization is a Member
    • Sign in to myTCB®
    • Executive Communities
    • Member-Exclusive Programs
    • Refer a Leader - Earn a Reward
  • About Us
    About Us

    The Conference Board is the global, nonprofit think tank and business membership organization that delivers Trusted Insights for What's Ahead®. For over 100 years, our cutting-edge research, data, events and executive networks have helped the world's leading companies understand the present and shape the future.

    • Who We Are
    • About Us
    • In the News
    • Press Releases
    • Our History
    • Support Our Work
    • Locations
    • Contact Us
    • Our Community
    • Our Leadership
    • Our Experts
    • TCB Speaker Bureau
    • Trustees
    • Voting Members
    • Careers
    • This Week @ TCB
    • Continuing Education Credits (CEUs)
Check if You're a Member
Create Account
Forgot Your Password?

Members of The Conference Board get exclusive access to the full range of products and services that deliver Trusted Insights for What's Ahead ® including webcasts, publications, data and analysis, plus discounts to conferences and events.

AI & the Economy

Data Center Buildout Puts Pressure on Power Infrastructure, Input Costs

08 May 2026 / Quick Take

Download Quick Take
  • Email
  • Linkedin
  • Facebook
  • X
  • Copy Link

Private data center construction spending in the US surged to $41.1 billion in 2025 from $31.1 billion the previous year, a growth rate of 32%. Over a longer 10-year period, growth was about 900%, driven by AI, rapid cloud adoption, and accelerating digital advancements across industries, including e-commerce. However, this rapid growth is coming with escalating risk associated with power infrastructure constraints, rising input costs, longer lead times for construction, and even states considering banning new data center construction.

Private data center construction spending in the US surged to $41.1 billion in 2025 from $31.1 billion the previous year, a growth rate of 32%. Over a longer 10-year period, growth was about 900%, driven by AI, rapid cloud adoption, and accelerating digital advancements across industries, including e-commerce. However, this rapid growth is coming with escalating risk associated with power infrastructure constraints, rising input costs, longer lead times for construction, and even states considering banning new data center construction.

Trusted Insights for What’s Ahead®

  • Adding data center capacity is necessary, as vacancy rates for existing data center space is at historic lows with pricing at all-time highs. Preleasing activity for planned and under-construction data centers is about 75%, a significant increase from historical norms of about 45% before construction is complete.
  • Data center growth is accelerating the need for additional power and grid capacity. According to the US Energy Information Administration (EIA), data centers are the primary driver of the strongest four-year growth in US electricity demand since 2000. US electricity consumption may reach record highs of 4.4 trillion kWh i

Author

Erin McLaughlin

Erin McLaughlin Erin McLaughlin

Senior Economist, ESF
The Conference Board

Read Bio

This publication is available to you, but you need to sign in to myTCB® or create an account to access it.To learn more about becoming a Member click here. To check if your company is a Member, click here

Sign In

Forgot your password

Create An Account

 

Keep my computer signed in

Forgot your password

Create An Account

myTCB® Members get exclusive access to webcasts, publications, data and analysis, plus discounts to events.

Great News!

You already have an account with The Conference Board.

Please try to login in with your email or click here if you have forgotten your password.

Create An Account



 

By Clicking 'Create Account', You Agree To Our Terms Of Use

Create Account

Other Related Resources

Brief

Labor Market: Maintaining Stability Amid Chaos

Labor Market: Maintaining Stability Amid Chaos

May 08, 2026

Report

Global LEI Report

Global LEI Report

May 04, 2026

Brief

Will Business Investment Save GDP Growth, as Consumers Retreat in 2026?

Will Business Investment Save GDP Growth, as Consumers Retreat in 2026?

April 30, 2026

Brief

FOMC Decision: Three Hawkish Dissents Signal Fed Moving Closer to Neutral Stance

FOMC Decision: Three Hawkish Dissents Signal Fed Moving Closer to Neutral Stance

April 29, 2026

Brief

April FOMC Preview: Powell’s Swan Song

April FOMC Preview: Powell’s Swan Song

April 27, 2026

Report

From Principles to Practice: Governing AI in the Corporation

From Principles to Practice: Governing AI in the Corporation

April 22, 2026

Brief

March Retail Sales Rose on Higher Gas Prices

March Retail Sales Rose on Higher Gas Prices

April 21, 2026

Article

Economy Watch: US View (April 2026)

Economy Watch: US View (April 2026)

April 20, 2026

Article

Global Forecast Update

Global Forecast Update

April 17, 2026

Article

The Conference Board Economic Forecast for the US Economy

The Conference Board Economic Forecast for the US Economy

April 15, 2026

Article

Fueling the EU Food Bill: Food Prices Rise 6-12 Months After Natural Gas Prices

Fueling the EU Food Bill: Food Prices Rise 6-12 Months After Natural Gas Prices

April 14, 2026

Brief

CPI Surge Limited to Gasoline and Airfares for Now, Spillovers Ahead

CPI Surge Limited to Gasoline and Airfares for Now, Spillovers Ahead

April 10, 2026

Brief

Don’t Dismiss February PCE as Old News

Don’t Dismiss February PCE as Old News

April 09, 2026

Brief

Volatility Aside, Labor Market Remains Stable

Volatility Aside, Labor Market Remains Stable

April 03, 2026

Additional Resources

Tariff Tracker

Tariff Tracker

April 02, 2026

Brief

Retail Sales See a Weather Rebound, Q1 Spending Still Tracking Weaker

Retail Sales See a Weather Rebound, Q1 Spending Still Tracking Weaker

April 01, 2026

Brief

Deep Hiring Freeze Persists on the Eve of Iran War

Deep Hiring Freeze Persists on the Eve of Iran War

March 31, 2026

Brief

Fed Meeting Reaction—Remaining on the Sidelines

Fed Meeting Reaction—Remaining on the Sidelines

March 18, 2026

Essay

AI and the Boundaries of Expertise: What the Expert Systems Boom Teaches Us

AI and the Boundaries of Expertise: What the Expert Systems Boom Teaches Us

March 16, 2026

Article

Economy Watch: US View (March 2026)

Economy Watch: US View (March 2026)

March 13, 2026

Brief

Economy Enters Wartime Shock on Softer Footing Than Expected

Economy Enters Wartime Shock on Softer Footing Than Expected

March 13, 2026

Brief

Labor Market: Maintaining Stability Amid Chaos

Labor Market: Maintaining Stability Amid Chaos

May 08, 2026

Report

Global LEI Report

Global LEI Report

May 04, 2026

Brief

Will Business Investment Save GDP Growth, as Consumers Retreat in 2026?

Will Business Investment Save GDP Growth, as Consumers Retreat in 2026?

April 30, 2026

Upcoming Webcasts

Power Shifts: From the Fed to EV Markets

Power Shifts: From the Fed to EV Markets

May 13, 2026

Upcoming Webcasts

Labor Markets Watch: AI Adoption & Talent Expectations

Labor Markets Watch: AI Adoption & Talent Expectations

May 14, 2026

On Demand Webcasts

The Iran Conflict: Risks for the Global Economy

The Iran Conflict: Risks for the Global Economy

April 15, 2026

On Demand Webcasts

The Global Water Crisis—Mitigation and Adaptation in a World of Water Shortages

The Global Water Crisis—Mitigation and Adaptation in a World of Water Shortages

March 25, 2026

On Demand Webcasts

Overloaded: How Will AI Datacenters Impact the US Energy Industry?

Overloaded: How Will AI Datacenters Impact the US Energy Industry?

March 11, 2026

On Demand Webcasts

Priced Out: The State of US Housing Affordability

Priced Out: The State of US Housing Affordability

February 11, 2026

Councils

Division Presidents and COOs Council

Division Presidents and COOs Council

Upcoming Webcasts


 Power Shifts: From the Fed to EV Markets

Power Shifts: From the Fed to EV Markets

May 13, 2026

Upcoming Webcasts


 Labor Markets Watch: AI Adoption & Talent Expectations

Labor Markets Watch: AI Adoption & Talent Expectations

May 14, 2026

On Demand Webcasts


 The Iran Conflict: Risks for the Global Economy

The Iran Conflict: Risks for the Global Economy

April 15, 2026

Conference Board Sample Web Chat
chatbot-Icon
TCB Logo
chatbot-Icon
C-Suite Insights - Stay updated on the biggest issues facing business executives.
WHO WE ARE
  • About Us
  • Our History
  • Our Experts
  • Our Leadership
  • In the News
  • Press Releases
  • Locations
EXPLORE
  • Membership
  • Centers
  • Councils
  • Reports
  • Events
 
  • Webcasts
  • Podcasts
  • Data
  • Ask TCB
  • This Week @ TCB
CONTACT US
  • North America
    +1 212 759 0900
    customer.service@tcb.org
  • EMEA
    +32 2 675 5405
    brussels@tcb.org
  • Asia
    Hong Kong | +852 2804 1000
    Singapore | +65 8298 3403
    service.ap@tcb.org
CAREERS
  • See Open Positions
Terms Of Use | Privacy Policy | Event Code of Conduct | Trademarks
© 2026 The Conference Board Inc. All rights reserved. The Conference Board and torch logo are registered trademarks of The Conference Board.
The use of all The Conference Board data and materials is subject to the Terms of Use. Reprint requests are reviewed individually and may be subject to additional fees.The Conference Board reserves the right to deny any request.
Terms of Use | Privacy Policy | Event Code of Conduct | Trademarks
© 2026 The Conference Board Inc. All rights reserved. The Conference Board and torch logo are registered trademarks of The Conference Board.
The use of all data from The Conference Board data and materials is subject to the Terms of Use. Reprint requests are reviewed individually and may be subject to additional fees.The Conference Board reserves the right to deny any request.

Thank you for signing up. You will now receive CEO Insights for What's Ahead every Wednesday morning. You can unsubscribe at any time or manage your preferences to receive more content from The Conference Board.

Important: Your Membership subscription payment is past due. We have not yet received your Membership payment. Please click the button below to pay your invoice.

Pay Invoice

Announcing The Conference Board AI Virtual Conference Series

Explore the Impact of AI on Your Business

Members receive complimentary registration - Learn more >>