Compounding the problem is the fact that data centers tend to be clustered in certain regions, the report said. That concentration threatens to overwhelm local grids. Utilities have been struggling to keep up. Typically, they tend to plan many years, even decades, in advance, expecting slower, linear demand growth. AI’s explosive power needs have thrown many of those plans into disarray.

As a result, many data center developers and operators have begun signing deals directly with renewable developers and nuclear startups.