IndustryBloomberg|April 1, 2026
Bloomberg reports that the binding constraint on US data center expansion isn't financing, permitting, or labor. It's the physical availability of transformers, switchgear, and other critical electrical equipment.
- Lead times for large power transformers (100 MVA+) now stretch 18-36 months, up from 6-12 months pre-2023
- Medium-voltage switchgear delivery is running 52-78 weeks
- Manufacturers like Hitachi Energy, Siemens, and Eaton are expanding production capacity, but new factory buildouts take 2-3 years
- Some developers are pre-ordering equipment before securing site permits, tying up capital 2+ years ahead of construction
- Smaller operators without long-term supply agreements are getting squeezed out. The equipment pipeline effectively favors hyperscalers who can commit to multi-year volume contracts







