Power Grid Permits and Refurbished Gear Slow U.S. Data Center Expansion

Research firm Bernstein reports that the pipeline of planned U.S. data center projects now requires an estimated 12 years of interconnection and permitting, up from 10 years a month earlier. The delay reflects a bottleneck in tying massive power loads to grids not designed for them, leaving more than 60% of capacity slated for 2027 still unbuilt. Bitcoin miners such as Iris Energy and Core Scientific, which already have power connections, are being highlighted as potential AI infrastructure providers.

At the same time, risk managers warn that the rapid build‑out is driving operators to acquire second‑hand or refurbished electrical equipment—transformers, switchgear and generators—through grey‑market channels. This practice raises concerns over equipment reliability, governance, and insurance liability, especially for critical AI and cloud workloads.