AI data centers could claim 40% of the US electrical equipment market by 2030

Data centers’ share of the US electrical equipment market could rise from just under 2% in 2020 to about 40% under accelerated growth scenarios, according to consultancy Wood Mackenzie, as the rapid expansion of AI data centres puts significant pressure on power companies.

The consultancy estimates US data center capacity will grow from around 24 gigawatts today to 110 gigawatts by 2030. According to a Reuters report, developers are now securing critical electrical equipment years in advance, placing additional pressure on already limited supplies of transformers, circuit breakers and switchgear.

Transformers, which raise or lower electricity voltage, have faced supply shortages since demand recovered faster than manufacturing capacity following the Covid-19 pandemic, with AI data center construction adding further pressure. Lead times for generator step-up transformers exceeded 160 weeks in the first quarter of 2026, up from an average of 143 weeks in 2024, while high-voltage circuit breaker lead times rose to 125 weeks in the second half of last year, from 77 weeks in 2023.

“Equipment availability is becoming the biggest concern for developers as they value time to market so highly,” Ben Boucher, senior analyst with Wood Mackenzie, told Reuters, adding that transformer costs could rise by around 4% to 10% over the next year depending on the equipment type.

To manage the longer wait times, utilities and developers are placing orders years earlier, refurbishing older transformers and diversifying suppliers. California’s Roseville Electric Utility, for instance, now operates on a three-year procurement timeline, up from about a year previously, with some equipment ordered up to five years in advance.