US data centre pipeline growth slows in Q1
Author: Joe Peck
The pace of new US data centre developments slowed during the first quarter of 2026, with developers increasingly focusing on advancing existing projects rather than announcing new capacity, according to global research and consultancy firm Wood Mackenzie.
Its latest US data center pipeline: Q2 2026 report found that 36GW of new data centre capacity was added to the development pipeline during Q1 2026, a 19% decline compared with Q4 2025. Total disclosed pipeline capacity now stands at 331GW, with around 40% of projects under active development.
Wood Mackenzie says the slowdown reflects a more challenging development and regulatory environment, with established developers prioritising the delivery of existing projects.
Caitlin Connelly, Senior Analyst at Wood Mackenzie, explains, “Established data centre developers continue to shift their focus to the maturation of their existing pipelines in the face of an increasingly challenging development and regulatory environment.
“New entrants focused on gas supply and land access are targeting states such as Texas and Utah, but only a small fraction of those projects are under active development.”
Investment remains strong despite slower additions
Texas continues to lead the US market with almost 100GW of planned capacity, followed by Ohio. New projects are also being planned in states including Utah, New Mexico, and West Virginia, although relatively few have progressed into active development.
The report found that 53% of projects have passed the permitting stage, although these account for only 32% of total planned capacity. Meanwhile, signed construction or electricity supply agreements now cover 195GW of capacity, equivalent to around 26% of the United States’ peak electricity demand in 2025.
Wood Mackenzie also reports that disclosed capital investment in specific projects has exceeded $1 trillion (£743 billion). However, investment remains highly concentrated, with just 6% of projects accounting for 42% of total disclosed capital expenditure.
The report also highlights increasing use of behind-the-meter power generation, particularly in Texas. Across projects where generation strategies have been disclosed, gas accounts for 48% of total site capacity, while renewable energy and battery storage represent 38%.
Caitlin continues, “The regulatory environment for data centre development is increasingly complex and regionally diverse. Interruptible service options are being deployed, forcing companies to choose between speed to power and firm power. Policymakers tend to view firm service as an unnecessary friction to interconnection.
“Fast-track capacity interconnection frameworks seek to bring new generation online quickly ahead of a supply crunch. It remains to be seen whether policy developments help or hinder demand growth, however, as policymakers seek to balance the often competing priorities of affordability and speed to power.”
