Wood Mackenzie reports grid challenges from US data center surge

Wood Mackenzie, a UK-based global energy research firm, has reported that the US data center pipeline has expanded from 50 GW in 2024 to 134 GW in 2025. This growth is expected to increase national electricity demand by 12%, with utilities committing 63 GW of new capacity to support it. According to Wood Mackenzie, regulated utilities are better positioned than deregulated markets to connect large data center loads due to integrated planning and land ownership. Established community relations have also helped reduce project delays and interconnection costs. The report noted that permitting delays, equipment shortages, and coal plant retirements continue to restrict project timelines. Wood Mackenzie added that off-grid solutions remain limited due to reliability concerns, while unmet demand could leave existing customers covering infrastructure costs. Earlier this year, Wood Mackenzie said proposed US budget changes to tax credits may also affect solar deployment and financing.