Data Center Buildout Strains Power Infrastructure and AI Supply Chains

A massive global demand for artificial intelligence (AI) computing is putting huge pressure on data center supply chains and power infrastructure. According to the latest Data Center Construction Cost Index 2025–2026 by Turner & Townsend, the rapid expansion of AI facilities has pushed the industry to a critical point. What was once a gradual move toward high-performance data centers has now turned into a fast-paced race that is testing the limits of power grids, cooling systems, and construction capacity. 

The year 2025 marks a major shift from traditional air-cooled data centers to high-density, liquid-cooled facilities built specifically to handle AI workloads. These new data centers need advanced cooling systems to manage the enormous heat generated by AI processors. However, 83% of experts surveyed in the report believe the current supply chains are not ready to deliver the complex cooling systems that AI centers require. This shortage of equipment and skilled labor is already slowing down construction timelines. 

Power availability has also become one of the biggest worries for data center developers. Almost half of the experts interviewed said that power shortages and long wait times for new grid connections are delaying many projects. As AI facilities consume much more energy than traditional centers, competition for electricity is growing, especially in big cities and emerging tech hubs. Utilities are struggling to keep up with rising digital demand while also managing broader efforts to electrify industries and transportation. 

Construction costs are climbing as well. Turner & Townsend projects that traditional data center construction costs will rise by about 5.5% globally in 2025, mainly due to strong demand and labor shortages. Building AI-focused centers is even more expensive. In the United States, the report estimates a 7–10% cost premium for AI-ready facilities compared to regular builds because of their complex engineering and cooling needs. 

Globally, the most expensive places to build data centers remain Tokyo, Singapore, and Zurich, followed by Silicon Valley, London, and Frankfurt. These regions face tight capacity, high land and energy costs, and rising demand from AI developers, all of which keep prices high. 

Experts warn that the industry must adapt quickly to avoid slowing down AI growth. Developers and investors are being urged to rethink their supply strategies, adopt more energy-efficient designs, and work closely with regulators and utilities to solve power connection delays. Some experts also suggest exploring off-grid energy solutions, such as renewable microgrids, to reduce pressure on public utilities. 

If the industry fails to act, the world’s digital growth could face serious bottlenecks. But with faster innovation and better planning, the next wave of AI data centers could become both powerful and sustainable. 

That would be regrettable given the pace at which firms like D-Wave Quantum Inc. (NYSE: QBTS) are making progress in fine-tuning even more advanced technologies like Quantum computing that can revolutionize not only artificial intelligence but also all other existing computing systems. 

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS 

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