What happened
US data centre capacity additions halved from Q3 to Q4 2025. Only 33% of 241GW disclosed capacity is under active development, with 58% of committed power relying on 'wires-only utilities.' PJM, a utility provider, committed power to data centres at three times the rate new generation came online. Total US data centre capital expenditure growth decelerated for the first time since 2023, despite $948 billion in total capex.
Why it matters
AI infrastructure deployment faces constraints from announced data centre capacity outstripping actual development and power availability. Procurement teams will encounter higher costs and longer timelines for compute resources due to limited active construction and reliance on self-sourced power generation. This bottleneck, coupled with decelerating capital expenditure growth, indicates a tightening market for AI compute, impacting platform engineers' ability to scale and investors' return on infrastructure investments.
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