Data Centers in Santa Clara Wait for Power

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Recorded10 Nov 2025

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Data Center Developers in Santa Clara Face Power Shortage: A Growing Challenge for the US Tech SectorTwo major data center developers in Santa Clara, California, are grappling with a significant issue: their newly constructed facilities, designed for AI and cloud computing, remain vacant due to insufficient electricity supply from Silicon Valley Power. This predicament underscores a burgeoning problem across the US tech sector, as aging power infrastructure and slow upgrades struggle to keep pace with surging demand for data centers. Experts anticipate a more than doubling of electricity needs for AI computing in the US by 2035, exacerbating the bottleneck. Silicon Valley Power is investing $450 million in system upgrades, but completion is not expected until 2028. Meanwhile, companies like Digital Realty are working with the utility to secure power by the end of this year. This situation is not isolated to Santa Clara, with other regions like northern Virginia and Oregon also facing substantial delays in connecting new data centers to the grid due to utility capacity limits, with some waits lasting up to seven years.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.

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