The US data centre boom: outlook for demand, constraints, and impact on enterprise technology

US data centre investment is accelerating at an unprecedented pace, driven by rapid growth in cloud computing and AI. Yet behind the headline expansion, the outlook is becoming more complex. Power availability, grid bottlenecks, rising construction costs, and policy constraints are emerging as the key limits to how fast capacity can be added — even as demand for compute continues to surge.

US data center investment is accelerating at an unprecedented pace, driven by rapid growth in cloud computing and AI. Yet behind the headline expansion, the outlook is becoming more complex. Power availability, grid bottlenecks, rising construction costs, and policy constraints are emerging as the key limits to how fast capacity can be added — even as demand for compute continues to surge.

In this webinar, Oxford Economics will examine recent trends and the forecast outlook for US data centres, exploring where capacity is being built, why clustering matters, and how risks are evolving across regions. We assess short-term overbuild risks versus long-term compute growth, the sustainability of AI-driven demand, and the scale of the electricity shock facing the US grid. The discussion takes a national and subnational view, highlighting implications for power markets, construction activity, and downstream impacts on enterprise technology spending, including devices and connectivity.

• Join Oxford Economics to explore the forces shaping the next phase of US data centre expansion, including:

• What are the high-level implications for enterprise technology products such as devices, and connectivity?

• Will AI-driven demand be sustained, or is there a risk of a pullback in investment?

• Where will new data centre’s be built, and how will power access and grid constraints shape clustering?

• How big is the electricity demand shock — and what does it mean for costs, planning, and capacity growth?

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Speakers

Sebastien Tillett

Sebastien joined Oxford Economics in 2023 as a graduate working across freight and transport advisory consulting. His main area of experience is in providing data analysis on projects within the maritime/trade and transport industries.

Prior to working at Oxford Economics, Sebastien had technology roles at AMP and Macquarie Bank before completing a Master of Economics.

Economist

Barbara Byrne Denham

As a Lead economist at Oxford Economics, Barbara brings a seasoned approach to the study of US cities. She works in Oxford Economics’ division of Cities and Regions analysis where she leads in writing reports on US metros. Prior to joining Oxford Economics, she worked six years for Moody’s Analytics REIS where she did similar work and wrote a number of white papers covering metro-level analyses including the Impact of the Tax and Jobs Act on Commercial Real Estate; Amazon HQ2, a Scoring Analysis; and the Economics of College Towns. Barbara’s work is frequently cited by the Wall Street Journal, New York Times, Crains New York Business and numerous other publications.

Prior to working at Moody’s, Barbara worked more than 20 years at various commercial real estate firms including Jones Lang LaSalle and Eastern Consolidated where she focused on writing market reports and white papers.

Barbara holds a bachelor’s in business administration from the University of Notre Dame and is a Ph. D. candidate in Economics from New York University.

Lead Economist, Cities & Regions