US Firms Face Power Shortages in Race to Build AI Infrastructure

American companies are pouring billions into artificial intelligence infrastructure, but aging power grids and bureaucratic delays threaten to stall progress. Digital Realty Trust Inc.'s six-year-old data center project in Santa Clara remains partially powered, while Stack Infrastructure's 48-megawatt facility sits idle—both victims of California's strained electrical infrastructure.

The bottleneck reflects a broader crisis as AI and cloud computing demand outpaces grid capacity. Transmission line construction lags behind need, with regulatory hurdles compounding the problem. Silicon Valley Power, like many utilities nationwide, struggles to modernize networks designed for last century's power demands.

This infrastructure gap emerges as tech giants and startups alike scramble to secure computing resources for AI development. The situation mirrors challenges seen during previous tech booms, where physical constraints unexpectedly limited digital growth.