As AI adoption and hyperscale computing continue to drive significant data center growth, companies are facing increasing challenges related to power availability, infrastructure constraints, and long-term energy planning.
In a recent Insight, partners Jane Accomando, Arjun Ramadevanahalli, Paul Gordon, and Jared Sanders discuss how rising electricity demand is reshaping US energy markets, energy procurement strategies, and the development of large-scale digital infrastructure projects. The Insight highlights how nuclear power, self-supply models, and other dedicated power solutions are becoming increasingly relevant as data center developers seek reliable, scalable electricity in a constrained grid environment.
The authors examine several approaches organizations are using to address grid limitations and project execution risk, including power purchase agreements, specialized utility tariffs, negotiated service agreements, behind-the-meter generation, energy park and microgrid models, demand flexibility, and “bring your own power” strategies.
They also discuss how interconnection delays, regulatory approvals, cost allocation concerns, and tax credit structuring can affect project economics, development timelines, and commercial negotiations. As companies continue to expand digital infrastructure, energy strategy is likely to remain closely tied to contracting, project development, regulatory planning, and long-term operational certainty.
Legal practice assistant Alyssa Yocum contributed to this blog post.