Since the boom of artificial intelligence (AI) moves the exponential demand for data centers, the position of the United States as the leader of you is in danger without urgent action to resolve growth restrictions. “The transition to cloud -based services and generative applications for AI (predicted to drive) a 37% annual increase in AI spending by 2032,” Bloomberg. Significant growth comes at a time when supply chain restrictions restrict revenue growth to the largest US data center developers – known as hypertension. In the past year, hyperscalers mark the supply chain of the data center as the head in their growth during quarterly calls for earnings. If it remains unchanged, the progress and position of the United States as a world leader in AI innovation can be at risk. The United States has 45% of all global data centers by counting, according to Bloomberg, but products that meet these centers are often sources from outside US data centers require a complex mix of chips, servers, network equipment, storage, cooling and power and many other components to work. The four basic restrictions on the data center growth are the supply of chips and other products for production, tariffs, availability of land and reliable electricity. With the increased focus on reshaping production around the world, countries distribute significant resources in an attempt to overtake the United States into the data center infrastructure and the data center. Nimbal scaling with flexibility to resolve supply chain restrictions is crucial to future growth.
The bottlenecks of the semiconductor chip chain – most of which are produced in Asia – play a major role in squeezing data centers, because such chips are crucial to meet the needs of the data center. The US Chips and Sciences Act in 2022 set aside $ 280 billion in funding to stimulate domestic chip production (Figure 1). But as it takes several years to stend new capacities for semiconductor production; Those who finance the Law on Chips are unlikely to be operational by 2028 or 2029. The United States is leading its peers in the chip production movement. The next biggest stimulus for the government’s European chips was the European Union in 2023, which set aside 43 billion euros ($ 47 billion) to the sector. (Title ID = “Attackment_231973” align = “alignnone” width = “1024”)
1. Source: Intelligence of Bloomberg, Peterson Institute of Economics, Analysis of the US Census Bureau of Martin Forzema, RSM US LLP(/title) Current regulations also change the landscape every day. The Trump administration has signaled an appetite for abolishing or scoring the Law on Chips. Furthermore, tariff escalation threatens to exceed the supply chain of the data center with a significant increase in prices. Primarily China is a large supplier of chips, servers and network connection equipment that are key to the capacity of the US Data Center, and Canada is the primary foreign US and aluminum US foreign supplier used in construction and data center building. Some of the operations of the US Hypercalier Data Center are also found in areas that are known to import some Canadian power, including in – but not limited to – Oregon, Washington, Newujork, Massachusetts, Ohio and Illinois.
Do you want to know more about how electricity demand from data centers affects the electricity production sector? Register to attend Power Exchange of electricity in the center of data Event in Denver, Colorado, on October 28th. The summit is related to Energy power of power Denver event scheduled October 29-31.
The Trump administration also suggested additional tariffs, including a new 25% tariff for Taiwan semiconductors. This tariff will be fatal for US technology technology, given the centralized production of the most advanced chips in Taiwan. As costs are increasing to operate in the United States, multinational companies have an impetus to boost the capacity of the data center at other locations.
In June 2024 Estimates include northern Virginia by 2027; Newou Albani, Ohio until summer 2028; Silicon Valley by 2034; And he noted that Dallas, Texas, already exceeds the supply. According to a December 2024 report by the US Department of Energy, US data centers spent 176 terawat-hours in 2023, or 4.2% of US electricity consumption. To say that in perspective, our data centers spend more than 54% of total energy consumed by all Mexico and its 130 million citizens during that year. Also significant is the growth rate of demand (Figure 2). In the last 15 years, the growth of electricity demand in the United States has almost flat at only 0.1% annually. Now, looking at 2% to 3% per year of growth-wide in the regions of the data center-these growth rates feel incredible for the ecosystem that is simply not used for it. (Title ID = “Attackment_231972” align = “alignnone” width = “1024”)
2. Source: RSM US LLP, US Energy Information in the United States(/title) The need for reliable power has made many hyperzals explore the “Meter” model, where they own and manage their own energy sources. While they still need to connect to the elasticity network against outages, this model offers greater control and easier prediction for future scaling. However, the main challenge with this strategy is the required construction time. Nuclear power plants, favored by technology companies for being very reliable and having carbon -free emissions, can take more than a decade to build and often face a public return. Renewable springs, such as solar and wind – when paired with battery storage – can be a sustainable option to bring large amounts of power online for as much as 12 to 18 months. Natural gas would be a sustainable source, but the longer time schedule of four to five years to bring a new natural gas plant online makes that reality more problematic. Energy is not the only source of energy consumption of the data center. Since 2023, Macking has estimated that 40% of all data of the data center goes to cool. Cooling is a central part of the data center management to prevent damage, failure of equipment and maintenance. In the industry that is expected to provide an improvement of 99,999% (or equivalent of 5.25 minutes a year), overheating can have serious impacts. In 2023, the Singapore Data Center warmed up, resulting in 2.5 million banking transactions to collapse in two multinational banks. Cooling water -based methods are becoming more and more popular solutions, which will have implications for local utility capacity, expansion and efficiency.
The US data centers are historically overwhelmed by major internet exchanges, which also meet the energy needs listed above, while protecting them from great environmental risks, such as natural disasters. However, such as regions such as northern Virginia, Oregon, Phoenix and Dallas/Fort Worth are becoming saturated, developers are looking for alternative locations for data centers. The state regulatory landscape is being developed, with lawmakers planning and proposing accounts aimed at providing data centers to pay their fair share of energy bills and in some cases set goals for renewable energy for customers of the data center.
Demand of the data center is expected to increase exponentially, AI turbocharger. Growth provides the opportunity for the entire ecosystem of rack production for servers to energy sources to power and cooling of data centers. By changing the regulatory landscape, US winners will probably be those with less exposure to foreign supply chains. Agility will also be important as AI continues to develop with a fast clip and reshape the wider ecosystem of the data center. Organizations can take numerous roads to prepare for this growth. These may include an assessment of scaling capabilities, understanding the environmental impact of interest rates on future plans, identifying potential alternative suppliers and tapping in stimulating programs that can support growth. – –Andrew FeDele is the director in RSM US LLP Practice for transaction advisory services. David Carter is the director in the practice of RSM Security and Privacy Services in the US LLP. Mac Carroll is the older manager of RSM Tax Services US LLP.
