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Pressing challenges impacting the future of US data centres
In this exclusive article for DCNN, Matt Coffel, Chief Commercial and Innovation Officer at Mission Critical Group (MCG), explores how growth in the US data centre market is being affected by increasing challenges, demanding new levels of collaboration and innovation across the sector:
An increasingly omnipresent industry
Data centres and related facilities are everywhere today. Synergy Research Group states hyperscalers account for 44% of those facilities worldwide, while non-hyperscale colocation and on-premise account for 22% and 34% respectively. They also project that by 2030, hyperscalers will account for 61% of all data centres and related facilities.
While there are no definitive estimates on how many of these facilities will be constructed in the US in the coming years, planning and development in the country are happening faster than ever before. Take, for example, the recent developments in Pennsylvania regarding investment in data centres and other technology infrastructure to support AI, including significant investments from Amazon and CoreWeave.
With AI adoption surging and data generation accelerating in sectors like healthcare, financial services, and the federal government, the number of data centres is only set to grow. But as demand rises, so too do the obstacles. Data centre operators and their partners face mounting challenges that threaten timelines, drive up costs, and complicate efforts to scale efficiently - and there are no easy fixes.
Persistent and critical challenges
When it comes to the construction of a data centre, there are many factors to consider. However, four factors have emerged as critical challenges for data centre operators and their partners: permitting, power, skilled talent, and compute.
1. Regulation: Securing permits to build and operate
Even as demand for compute and power accelerates, operators are forced to navigate lengthy and often inconsistent approval processes. In some jurisdictions, permitting can take two to three years before projects can even break ground. These delays put US developers at a disadvantage compared to countries with more streamlined regulatory systems.
The challenge is compounded by the sheer scale of today’s facilities. Projects promising multiple gigawatts of capacity require not only land and power, but also regulatory sign-off on issues such as environmental impact, emissions, and noise. These reviews often involve multiple parties - utilities, consultants, environmental specialists, and local governments - which makes coordination slow and uncertain. Moreover, the difficulty varies widely by location. In cities like Austin in Texas, approvals can be tough to secure, while just miles outside the city limits, the process may move much faster.
2. Time to power
According to the International Energy Agency’s (IEA) Energy and AI report, “Power consumption by data centres is on course to account for almost half of the growth in electricity demand between now and 2030 in the US.”
This rising demand is evident in Northern Virginia, where a large cluster of data centres has been built over the past twenty years. With this cluster of data centres in a single area, along with the demands from AI and data processing loads, power substations have reached maximum capacity. This has forced utility providers and data centre operators to either bring in new lines from distant locations - where there is excess power, but transmission infrastructure is lacking - or to build new data centres in rural areas so they can access untapped power.
Yet, building new transmission lines from other locations or setting up data centres can take years and doesn’t address the current power demand.
3. Access to skilled talent to support current and future projects
Data centre operators and their partners are working to build new facilities across the US, often in remote parts such as Western Texas, where they can access untapped power sources. Building in these areas introduces several challenges related to skilled labour.
Building and maintaining a data centre requires highly skilled electricians, mechanics, and controls specialists who can handle complex electrical and mechanical systems and often on-site power generation. However, the US faces a nationwide shortage of these workers. The US Bureau of Labor Statistics forecasts that employment for electrical workers will grow by 11% from 2023 to 2033 - a much faster rate than the average for all jobs. Still, many electricians are nearing retirement and set to leave the field in the coming years. This is likely to create a gap that operators will find difficult to fill as they work to build and keep their facilities running.
Additionally, data centre operators and their partners face the reality that many skilled workers are unwilling to live far from population centres.
Recent estimates from Goldman Sachs Research underscore the scale of this challenge. It projects that the US will require 207,000 more transmission and interconnection workers and 300,000 extra jobs in power technologies, manufacturing, construction, and operations to support the additional power consumption needs projected for the US by 2030.
This dual challenge of labour scarcity and logistical complexity is making traditional, on-site construction methods increasingly untenable. As a result, the industry is pivoting towards prefabricated, modular power solutions that are engineered and assembled in a controlled factory environment. This approach mitigates the impact of localised labour shortages by capitalising on a centralised, highly skilled workforce and deploying nearly complete, pre-tested power modules to the remote data centre location for rapid and simplified final installation.
4. The accelerating pace of change in compute technology
The speed at which compute technology is evolving has reached an unprecedented level, putting enormous pressure on data centre operators and their partners.
Moore’s Law is no longer the standard; today’s compute configurations are far more advanced than ever before, with denser platforms being released every 12 to 18 months. This rapid cycle forces operators to rethink how they design and future-proof facilities - leveraging concepts such as modularisation - as infrastructure built just a few years ago can quickly fall behind.
The need for collaboration
Each of these challenges is significant on its own, but together they mark one of the most complex periods in the history of infrastructure development. To move forward, data centre operators, utilities, manufacturers, technology providers, and government agencies must work closely to identify solutions and provide support for each obstacle.
On the skilled labour front, companies outside the manufacturing space are also contributing. Earlier this year, Google pledged support to train 100,000 electrical workers and 30,000 new apprentices in the US. This funding was awarded to the electrical training ALLIANCE (etA), the largest apprenticeship and training program of its kind, founded by the International Brotherhood of Electrical Workers and NECA.
State leaders are playing a role as well. In Pennsylvania this summer, for example, the governor and other legislators have demonstrated strong support for data centre growth.
MCG, a manufacturer and integrator of power and electrical systems, is one example of how industry players are stepping up. MCG designs, manufactures, delivers, and services systems tailored for data centre operators and other mission critical environments.
In collaboration with operators and other equipment and technology providers, MCG produces modular power systems that are built off-site to ease workforce constraints. These systems are then delivered directly to data centres or their power facilities, where the MCG team commissions and maintains them.
With efforts from government officials, companies like MCG and Google, and other stakeholders, the US data centre industry can continue powering the digital future - no matter how much demand for power and compute increases.
For more from Mission Critical Group, click here.
Joe Peck - 17 October 2025