As the world embraces the rapid evolution of AI, the infrastructure behind it – data centers – has become a critical force shaping power demand. Those involved in developing and operating these centers are witnessing firsthand the challenges and opportunities that come with providing the amount of power required to sustain the required energy needs. We’re seeing this demand first-hand as we work with our clients developing data centers across the country.
From speed-driven development to navigating complex supply chains and regulatory obstacles, data centers are not just reshaping technology, but also rewriting the rules for energy demand and distribution.
The growing demand for power
Data centers, particularly those supporting AI systems, have triggered an unprecedented surge in energy demand that few foresaw even two years ago. This rapid growth in demand is outpacing the available power supply, creating significant bottlenecks for both the energy grid and data center developers.
One key reason for this mismatch is that many regions simply don’t have the infrastructure to handle such large-scale energy consumption. The challenge isn’t just securing enough power; it’s transporting that power to the data centers in a reliable and efficient manner.
Additionally, the power needed by data centers is not easily scalable within existing grids, causing delays in construction and operation timelines. Even when developers partner with utilities and other energy providers, the infrastructure upgrades required to handle these loads often take years, while demand is growing exponentially. This supply-and-demand imbalance is now a central concern in the energy and tech sectors, as the race to power AI-driven facilities intensifies.
Speed over cost: The pressure to deliver
Data centers are built with one goal in mind: getting operational as quickly as possible. Developers are relying on temporary generation (diesel or similar) to power buildings before they can get connected to the grid, and consultants with a suite of services can assist in guiding them through the process.
While this speed-to-market solution is not sustainable long-term, it allows data centers to come online quickly and start serving clients. These temporary measures reflect a broader trend in the industry, where the pressure to launch often outweighs the initial costs of development.
One of the major hurdles facing data centers is the availability of critical equipment. High-voltage electrical components – necessary for the massive energy demands of these centers – often have lead times of well over a year due to supply chain bottlenecks. This supply chain issue means that even when developers secure the necessary power, they may face delays in getting their data centers fully operational. As a result, many projects are being fast-tracked. Atwell is often leveraging national supplier relationships to ensure developers’ essential equipment arrives as quickly as possible. .
Delays in bringing a data center online can result in lost revenue opportunities, unserved demand, and weakened competitive positioning. Speed-to-market is crucial, and this collaborative effort is essential to meet customer demand, mitigate potential revenue loss, and ensure business continuity.
Self-generation and grid expansion
Given the challenges of sourcing power from the traditional grid, some developers are exploring alternative solutions. Self-generation of power – whether through natural gas or renewable sources – has become an increasingly viable option for data centers coming online quickly. Atwell can assist developers in identifying and implementing self-generation solutions by providing comprehensive site analysis and feasibility studies. Further, Atwell’s expertise in navigating regulatory approvals, interconnection support, and securing permits accelerates project timelines, helping developers bring energy solutions online more quickly.
Grid expansion remains a key focus for the long-term success of data centers. Developers are pushing for new transmission lines and infrastructure improvements to support the growing electricity demand. Working with public utilities and regulators, they are exploring ways to expand the grid without passing on the costs to local ratepayers. Atwell has the ability to do injection studies where we work with the utility provider to find an acceptable locations.
The sustainability question
While speed and efficiency are the primary drivers of data center development, sustainability is an increasingly important factor. Many developers are exploring ways to reduce the carbon footprint of their facilities, whether through renewable energy or improved efficiency measures. Federal incentives and tax credits are helping to make these initiatives more attractive, encouraging developers to incorporate green technologies into their plans.
The transition to sustainable energy sources is not without its challenges. Renewable energy projects take time to develop, and the supply chain constraints affecting traditional power infrastructure also impact green technologies. In the short term, many AI data centers will continue to rely on non-renewable power sources, such as diesel generators, until the grid can support their long-term sustainability goals.

The road ahead
The future of data centers is inextricably linked to the evolution of the energy infrastructure that powers them. As demand continues to grow, it’s clear that the traditional grid alone cannot keep pace with the speed and scale required. This presents an urgent need for investment in grid expansion and modernization. Atwell is uniquely positioned to help developers navigate this dynamic landscape by providing the expertise needed to accelerate project timelines and secure reliable energy solutions.
As we move forward, the challenge will be in striking a balance between immediate power needs and long-term sustainability goals. The AI-driven energy needs show no signs of slowing down, and the race to build energy infrastructure to support it is more critical than ever. With a deep understanding of both the technical and regulatory aspects of power and energy, Atwell is committed to guiding our clients through this period of rapid transformation.










