The demand for data center space is reaching unprecedented levels, fueled by the rise of AI and the continued expansion of cloud infrastructure. But in 2025, space isn’t the only thing in short supply. Across North America’s primary data center markets, the real constraint—the one reshaping site selection, construction timelines and leasing strategies—is power.

While thousands of megawatts of new supply are under construction in primary markets, securing the energy to bring that capacity online is an increasingly complex challenge. For enterprises and hyperscalers alike, power availability has become the single most important factor in ensuring the future of their digital infrastructure.

The Real Bottleneck: The Grid Trying to Keep Up

AI & High-Density Compute Are Power-Intensive by Design

Artificial intelligence isn’t just transforming industries, it’s transforming the requirements of the data centers that support it. Training large language models and deploying inference workloads at scale requires vast amounts of computational power. And with that comes an equally large demand for energy.

Whereas traditional workloads might require 5–10 kW per rack, AI workloads often demand 30–50 kW per rack or more, supported by specialized hardware like GPUs and advanced cooling systems. Multiply that by thousands of racks and you begin to see why entire regions are being pushed to their power limits.

Hyperscalers Are Grabbing Capacity Years in Advance

Cloud service providers are not only expanding their footprints, they’re doing it with long-term vision. In primary markets like Northern Virginia and Silicon Valley, hyperscalers are locking in power commitments for sites that won’t be delivered until 2026 or later. This forward consumption of capacity has created a scarcity dynamic that affects everyone—from the largest AI labs to the enterprise customer trying to lease a few critical megawatts.

Aging Infrastructure Can’t Keep Pace

The pace of power delivery is not keeping up with demand. Utility companies are facing long lead times—often 3 to 5 years—to deploy new substations, expand transmission lines and permit major upgrades. And in many jurisdictions, regulatory and environmental reviews add even more friction to an already slow-moving process.

Primary Markets Are Feeling the Strain

Let’s take a look at where this pressure is most intense.

Northern Virginia (Ashburn)

Still the most active and desirable data center hub in North America, Ashburn has hit a wall in terms of near-term power availability. Dominion Energy, the region’s primary utility provider, has paused approvals for new connections in some areas and is signaling that additional capacity won’t be available until 2026–2028. For now, many projects are stalled, reshuffled or simply moving elsewhere.

Silicon Valley

Land is scarce. Permitting is difficult. And PG&E’s grid is under stress from both data center demand and statewide energy policies. The result? A market that remains essential for latency-sensitive workloads but increasingly impractical for meaningful expansion—unless power has already been secured.

Dallas & Phoenix

Once seen as “safe havens” for new development, both markets are now approaching the same inflection point. Demand has caught up with grid capacity, and power is becoming the gating factor in new deals. Developers are being forced to plan farther ahead and get more creative in securing access to energy.

What This Means for Enterprises

The consequences of these power constraints are real—and they’re already being felt.

Delays & Opportunity Costs

For companies that didn’t plan ahead, the result is often a delay in deployments. Whether it’s a cloud migration, an AI rollout or a simple expansion of existing infrastructure, projects are being held up due to a lack of available power. And in a business climate that rewards speed, these delays can translate into missed opportunities and lost revenue.

Shift in Site Selection Strategies

Power availability is now driving a major shift in how and where companies build. Secondary and even tertiary markets—once considered niche—are getting a fresh look. Regions like Central Washington and Eastern Oregon offer abundant renewable energy, low-cost power and less congested infrastructure. These markets are becoming not just alternatives, but priorities.

Preleasing Becomes a Strategic Imperative

More than ever, preleasing is about more than securing square footage, it’s about locking in power allocations before they disappear. The companies that plan two to three years ahead are the ones that will be ready to scale when demand spikes. Those that don’t may find themselves left behind.

How Sabey Data Centers Is Planning for the Future of Power

At Sabey Data Centers, we’ve seen this power story coming—and we’ve built our strategy around it. Across our campuses, power planning is deeply integrated into our development model, enabling us to deliver capacity with confidence.

Here’s how:

• Upcoming Availability: With an additional 54MWs coming to Ashburn, VA, 18MW coming to Austin, TX and 30MW coming to our campuses in the PNW within the next 12-26 months, we will soon have leasable power in some of the nation’s key markets.  
• Utility Partnerships: We’ve built long-term relationships with regional utilities to ensure stable access to scalable power across our portfolio.
• Strategic Site Selection: Our campuses in places like Columbia, WA and Umatilla, OR offer access to abundant, renewable hydroelectric power—and plenty of runway for future growth.
• Vertical Integration: From entitlements and engineering to ongoing operations, we manage the full lifecycle of our facilities, giving us greater control over timelines, costs and energy strategy.
• Sustainability at Scale: We're committed to delivering efficient, low-carbon infrastructure that reduces overall power draw while meeting the performance requirements of the world’s most demanding workloads.

Conclusion: Don’t Wait on Power—Plan for It

In 2025 and beyond, power has become the primary currency of the data center world. And in the markets where everyone wants to be, that currency is already in short supply.

If your business relies on scalable, reliable infrastructure, now is the time to think differently. Preleasing with Sabey Data Centers means securing more than a footprint—it means securing a future. A future with power, purpose, and performance built in.

Let’s talk about how we can help your organization plan ahead—and power forward.