US Data Center Boom Slows Due to Power Grid Limits, WoodMac Says

US data center development has slowed because the power grid is reaching its limit to accommodate more large facilities, according to research from energy consultancy Wood Mackenzie.

Developers added data centers that would consume about 25 gigawatts of electricity to their project pipelines in the fourth quarter of 2025, roughly half as much as they added in the third quarter. Projected capital spending by the biggest developers will decelerate in 2026 compared with the previous year for the first time since 2023, the WoodMac report states.

“Both utilities and grid operators are essentially putting the brakes on and making ...