A recent analysis by Wood Mackenzie highlights a major structural shift in the United States electrical equipment market, driven primarily by the rapid expansion of data centres. The study shows that demand for power infrastructure is rising at an unprecedented pace as artificial intelligence, cloud computing, and digital services continue to grow. According to the report, the US data center electrical equipment market is expected to increase sharply from about $20 billion today to around $65 billion by 2030. In an accelerated growth scenario, data centres could account for up to 40% of the entire US electrical equipment market. This represents a dramatic rise compared to 2020, when data centres made up less than 2% of total market demand.

This surge is closely linked to a major expansion in electricity consumption. US data center capacity is projected to grow from roughly 24 gigawatts (GW) to about 110 GW between 2026 and 2030. This increase alone will account for around 68% of total electricity load growth in the country during this period. Over the same timeframe, data centres are expected to consume more than 400,000 gigawatt-hours (GWh) of electricity, which is about eight times the energy demand of electric vehicles. The scale of this growth makes it one of the most concentrated increases in power demand seen in recent decades. The rapid expansion is already creating pressure across the supply chain for electrical infrastructure.

Key equipment such as transformers, switchgear, and power distribution units are facing long manufacturing delays. Lead times for these components are currently between 18 and 36 months. These delays are pushing up costs and in some cases slowing down or postponing data centre construction projects. A major concern identified in the report is the size of the development pipeline compared to available power capacity. Around 600 GW of proposed data centre projects in the US are still searching for access to electricity. In contrast, only about 183 GW of projects have secured construction approval or signed electricity supply agreements with utilities. Even if a significant number of proposed projects are eventually cancelled, the report expects connected data centre capacity to nearly quadruple over the next four years.

To understand future demand, Wood Mackenzie presents two possible scenarios. In the moderated demand scenario, existing challenges such as long equipment lead times, manufacturing constraints, and delays in grid connection remain unresolved. In this case, data centre capacity is expected to reach around 95 GW by 2030. In the accelerated demand scenario, however, the industry manages to overcome these barriers through major investment in manufacturing capacity, faster deployment methods, and increased use of solutions such as on-site power generation and modular construction. Under this scenario, data centre capacity could rise to 259 GW by 2050.

The report also highlights the enormous pressure this places on electrical equipment manufacturers. Demand for critical components is expected to increase sharply. For example, pad-mounted transformers in the hyperscale segment are projected to rise from about 1,573 units in 2025 to 9,395 units by 2030. Similarly, panel boards are expected to grow from 5,111 to more than 30,500 units. Other essential equipment such as medium-voltage switchgear, automatic transfer switches, and power distribution units is also expected to see similar growth, reflecting the scale of infrastructure required to support new data centres.

Industry experts say this shift represents a fundamental change in the electrical equipment market. According to Ben Boucher, senior supply chain analyst at Wood Mackenzie, data centres require a level of power demand that is unlike any previous industrial load. He describes this as a structural transformation that will shape the next decade of the industry. He also notes that manufacturers are now facing a difficult decision. They must either invest heavily to expand production capacity or risk losing market share in what could become a $65 billion market by the end of the decade. If supply remains constrained, it could slow down the development of artificial intelligence infrastructure and other digital technologies that depend on data centre growth.

Boucher also points out that pricing pressure is already increasing. In some cases, manufacturers are returning to customers with updated prices that are about 20% higher than original contracts signed a year earlier. These increases are necessary to keep up with demand and maintain delivery schedules. Despite higher costs, large technology companies are continuing to accept these price increases because delays in launching new data centres could result in significant financial losses. Overall, the report concludes that the US data centre boom is reshaping the electrical equipment industry, creating both major opportunities and serious supply chain challenges as demand for digital infrastructure continues to accelerate.