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Fortune
Fortune
Business
Jacqueline Munis

"A bend in the trajectory": U.S. data center development has hit snags because the power grid is approaching its limits to support them

power grids at dusk (Credit: Sam Wolfe/Bloomberg via Getty Images)

Despite concerns over how data centers may hurt your wallet, don’t expect a new data center to open near you anytime soon. 

Data center development is slowing down, according to a new report from energy analytics firm Wood Mackenzie. In Q4 2025, developers only added 25 gigawatts of electricity capacity to their project pipeline, half of what was added the previous quarter. 

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