For years, data center developers focused on factors like fiber connectivity, land availability and tax incentives when deciding where to build. Today, access to power is one of the most important factors in that decision.
Artificial intelligence (AI) is driving significant growth in electricity demand. According to the International Energy Agency, electricity consumption from AI-focused data centers grew by roughly 50% in 2025 and is projected to triple by 2030.1 At the same time, rack densities continue to rise as AI workloads require more computing power than traditional applications.
The result: power availability, not geography or connectivity, has become the first filter developers apply to a potential site. Interconnection queues are growing, grid capacity is limited in some established markets and competition for available power has increased.
"The most prominent change is that power is now driving design decisions much earlier than before," says Tom Harper, Data Center managing director at Gallagher.
As a result, more projects are being developed in secondary and emerging markets where power may be more readily available. These locations can offer new opportunities, but they may also bring different weather patterns, infrastructure requirements and regulatory considerations than more established data center corridors.
Developers are also finding ways to adapt sites that may have been overlooked previously. Engineering solutions such as improved drainage, flood protection measures and upgraded power infrastructure can help support project goals while maintaining access to needed energy resources.
The broader shift is clear. Power strategy now influences where projects can be built, how quickly they can come online and how they operate over time. That makes energy planning an important part of development, financing and risk management discussions from the beginning.
Our new whitepaper, Powering the Data Center Boom: Energy Risk and the New Infrastructure Reality, explores how energy is influencing site selection, infrastructure planning and insurance considerations across the industry.