Global Electrical Infrastructure: Pulse check on the data center build out, power gen lead times and international competition

Research evidence excerpt

Global Electrical Infrastructure: Pulse check on the data center build out, power gen lead times and international competition

17 July 2026

U.S. Machinery

Global Electrical Infrastructure: Pulse check on the data center

build out, power gen lead times and international competition

Earlier this week, we met with the head of procurement at a leading data center developer, Chad Dillard

+1 917 344 8469 who also recently worked at a top 5 US electrical contractor. Below are the top 3 takeaways

chad.dillard@bernsteinsg.com from our conversation, which focused on the growing obstacles to data center construction,

the supply/demand environment in power generation (BTM + standby) and how China’s

Alasdair Leslie electrical equipment manufacturing footprint is expanding into the US under the radar.

+44 20 7762 4952

alasdair.leslie@bernsteinsg.com

It is harder to build a data center today than a year ago. More delays/cancellations in

Miguel Marques, CFA the first 4-5 months of this year than entirety 2025, driven by public aversion (power prices,

+1 917 344 8432 water usage, job losses). This uncertainty is forcing developers to hedge by multi-tracking

miguel.marques@bernsteinsg.com the same data center build in different geographic locations. The expert anticipates

60-65% of projects in pipeline to proceed as scheduled. As such, OEMs, particularly

Om Kela power gen (CAT, CMI, etc.), are stepping efforts up to protect backlog quality: higher +44 20 7550 2192

om.kela@bernsteinsg.com project viability standards (permits, financing & offtake), OEMs adding first right of refusal

to buy back equipment into contract if a project gets delayed. Although power remains

Specialist Sales a critical bottleneck, the skilled labor shortage is getting worse, especially amongst high