Transformer lead times hit 160 weeks as AI data centers strain US power grid

The rapid expansion of artificial intelligence data centres is putting significant pressure on US power companies, according to a report by Reuters, with developers now securing critical electrical equipment years in advance to get ahead of already limited supplies.

Transformers, which are used to raise or lower electricity voltage, have faced supply shortages since demand recovered faster than manufacturing capacity following the Covid-19 pandemic. Industry analysts told Reuters that the ongoing construction of AI data centers has added further pressure, pushing lead times for some high-voltage transformers from about one year in 2020 and 2021 to several years now. Wood Mackenzie estimates lead times for generator step-up transformers exceeded 160 weeks in the first quarter of 2026, up from an average of 143 weeks in 2024, while high-voltage circuit breaker lead times rose to 125 weeks in the second half of last year, from 77 weeks in 2023.

“Equipment availability is becoming the biggest concern for developers as they value time to market so highly,” Ben Boucher, senior analyst with consultancy Wood Mackenzie, told Reuters. The consultancy estimates US data center capacity will grow from around 24 gigawatts today to 110 gigawatts by 2030, and that under accelerated growth scenarios, data centers’ share of the electrical equipment market could rise from just under 2% in 2020 to about 40%.

The rising demand is also pushing up prices, with Boucher saying transformer costs could rise by around 4% to 10% over the next year, depending on the equipment type. Louis Finkel, senior vice president of government relations with the National Rural Electric Cooperative Association, said long-term supply agreements can help but “don’t solve everything, particularly for smaller utilities that don’t have the scale.”

To manage the longer delivery times, utilities and developers are placing orders much earlier, refurbishing older transformers, diversifying suppliers and, in some cases, asking customers to pre-pay for equipment with extended lead times, according to the report.