Electrical Distributors Are Critical to Avoiding AI Infrastructure Delays

AI data center growth is increasingly constrained by power availability and electrical supply, making distributors a critical factor in preventing project delays.

AI’s rapid growth is driving a wave of new data center construction, but infrastructure bottlenecks are starting to slow projects down. Although demand for compute continues to rise, the ability to deliver power and critical electrical components is becoming the defining factor in project timelines. This shift is putting the electrical supply chain under a spotlight and the role that distributors play in keeping development on track.

Here’s how big this demand has become:

• $630+ billion in projected AI-related infrastructure and compute investment (multi-year estimate) ¹
• ~19% year-over-year growth in U.S. data center power demand (2024)⁴
• Data centers expected to exceed 5% of global electricity consumption by 2030³

At this scale, building the facility isn’t the hard part anymore. The real challenge is securing power and the electrical components needed to bring it online.

Across projects, the same issues keep surfacing:

• Limited availability of transformers and switchgear 
• Delays tied to grid interconnection and power delivery 
• Increased competition for critical electrical components 

Project timelines aren’t driven by capital alone anymore. How well the electrical supply chain performs now directly affects how quickly new data center capacity comes online.

Why Electrical Distributors Determine AI Data Center Timelines

Electrical distributors sit at a pivotal point between manufacturers and data center construction. As demand has increased, their role has expanded from product fulfillment to a more coordinated function across procurement, logistics, and project execution.

Equipment shortages are already showing up in a few ways:

• The U.S. continues to rely heavily on imported transformers, with constrained domestic supply⁵ 
• Lead times for large electrical equipment can extend beyond a year 
• Availability varies widely depending on specifications and regional demand 

All of this makes it harder to keep tightly coordinated construction schedules on track. Data center builds depend on precise sequencing, and delays in electrical infrastructure can impact entire phases of development.

For example, in Northern Virginia, home to the world’s largest concentration of data centers, power and electrical infrastructure constraints have already delayed multiple projects. In 2022, utility provider Dominion Energy was unable to deliver power as scheduled to several data center developments, pushing some project timelines out by multiple years⁶. Even when construction is complete, power and infrastructure constraints can keep a project from going live.

To keep projects moving, distribution strategies are evolving:

• Inventory positioning: Increasing stock levels for high-demand products 
• Supplier expansion: Reducing reliance on single-source manufacturing 
• Coordinated delivery: Aligning shipments with construction timelines 
• On-site efficiency: Supporting staging, kitting, and pre-assembly 

These capabilities help reduce gaps between procurement and installation, improving the ability to stay on schedule.

Maintaining alignment across these activities requires stronger operational visibility. Many organizations are placing more emphasis on connected systems that bring together inventory, purchasing, and order management in a single view, helping teams respond more effectively as conditions change.

How Power Constraints and Supply Chain Pressure Delay AI Data Centers

The growth of AI infrastructure is placing added strain on both power systems and supply chains. Power availability remains one of the most significant constraints:

• Up to 100 GW of additional U.S. data center power capacity may be required by 2030² 
• Utilities are investing heavily in grid expansion, increasing demand for the same electrical components³ 

This overlap is creating competition for:

• Transformers and distribution equipment 
• Raw materials such as copper and steel 
• Skilled labor required for installation 

At the same time, longer lead times and inconsistent availability are making planning more difficult. Supply chain disruptions can affect multiple phases of a project, especially when several stakeholders are involved.

This environment increases the need for informed decision-making. Access to accurate, real-time information allows organizations to:

• Adjust purchasing based on current supply conditions 
• Forecast demand based on project pipelines 
• Coordinate across sales, operations, and logistics teams 

Enterprise platforms such as Epicor Prophet 21 are often part of this shift, providing visibility into inventory levels, supplier timelines, and order status. With a clearer view of operations, teams can better align supply with demand and reduce the risk of delays tied to incomplete or outdated information.

As complexity increases, the ability to operate with connected, reliable data is becoming a key factor in managing large-scale infrastructure projects.

What AI Data Center Growth Means for Electrical Distributors

The expansion of AI data centers is creating sustained opportunity across the electrical ecosystem. Demand is increasing not only in volume, but also in scale and consistency.

Several trends are shaping how organizations are capturing this growth:

• Larger project scope: Data center builds require significant volumes of electrical equipment 
• Recurring demand: Multi-phase developments create ongoing supply needs 
• Service expansion: Staging, kitting, and coordination services are becoming standard 

These changes are also influencing how value is delivered. Beyond product availability, there is growing emphasis on:

• Execution reliability 
• Delivery accuracy 
• Coordination across complex project timelines 

Organizations that manage these factors effectively are better positioned to support long-term data center development.

Operational alignment plays a role as well. As order sizes increase and timelines tighten, consistent processes supported by connected systems help maintain performance across projects. This includes inventory accuracy, supplier coordination, and fulfillment tracking.

How Electrical Distribution Enables Scalable AI Infrastructure

The continued expansion of AI depends on more than computing power. It relies on the physical infrastructure required to build and operate data centers at scale.

Several factors will continue to shape the pace of growth:

• Ongoing demand for AI-related compute capacity 
• Constraints in power availability and electrical equipment supply 
• Increased complexity in managing large, multi-phase construction projects 

Electrical distribution remains central to connecting these elements. The ability to source, manage, and deliver equipment efficiently has a direct impact on how quickly new capacity can be brought online.

As demand increases, visibility and coordination across the supply chain will continue to matter. Organizations that align procurement, inventory, and delivery through connected systems are better positioned to respond to changing conditions and maintain project timelines.

For those evaluating ways to improve operational visibility and execution, modern ERP platforms designed for distribution environments offer a practical path forward. Learn more about how Epicor Prophet 21 supports these capabilities and helps distributors manage complex, high-demand supply chains.

Sources

1.    Reuters. How Big Tech’s $630 Billion AI Spending Will Fall Short (2026) 
2.    Deloitte. Power and Utilities Industry Outlook (2025) 
3.    McKinsey & Company. Electrification Equipment Trends to Watch in 2026 (2025) 
4.    S&P Global. Data Center Power Demand Growth Report (2025) 
5.    Wood Mackenzie. Transformer Supply Deficit Report (2025)
6.    Bisnow. Northern Virginia Data Center Power Constraints and Development Delays (2024)