Loudoun County and Prince William County (both in Virginia) lie strategically within the Washington, DC metropolitan area. They represent the world’s largest and fastest-growing data center market with more than 5 GW of existing capacity and as much again under development, according to the International Energy Agency (IEA). Installed capacity in what is known as Data Center Alley increased by more than 500% in a decade. Yet, the local utility told one data center developer that there was no more power available. The grid can’t support more data centers.

This isn’t an isolated incident. Another data center operator in the Southeast was informed that it would take five years to provide the power it needed for a new facility.

At a time when projections for data center growth are through the roof, power availability from the grid is becoming scarce. Hence, you see the Googles, Amazons, Facebooks, and Microsofts of this world partnering with developers on nuclear, renewable, and natural gas-powered projects. If the grid can’t provide, they are figuring out alternative ways to obtain power within the timeframes they need.

North American Dominance

Consulting firm McKinsey noted that the fastest-growing market for data centers is the U.S., by far, with overall power demand forecast to rise from 25 GW in 2024 to more than 80 GW by 2030. That will boost data center electricity consumption from 2% of U.S. electricity usage to as much as 7.5% by the end of the decade, largely due to the rise of AI.

“North America is the most capacity-rich region in the world, hosting almost half of global live IT capacity,” said Jason Shepard, Managing Principal at Knight Frank. “It is supported by an abundance of suitable land, access to power, and strong.”

His company’s Global Data Centres Report 2025 reveals that almost 3 GW of new data center capacity was deployed in 2024 in the U.S., with a further 11 GW expected over the next two years. This is being driven by demand for AI and the cloud, Shepard added.

Scarce Power Means Cooling Must Up Its Game

In such a climate, many data centers will be forced to be far more efficient with the power they have. One of the primary ways to achieve this is to boost airflow efficiency so every kilowatt used for cooling is maximized.

Upsite research into dozens of data centers has uncovered that the average facility operates with excess cooling capacity nearly four times greater than the IT load. This is often the result of misdiagnosing cooling issues as a lack of capacity when the real problem is poor airflow management. In many cases, facilities compensate by simply adding more cold air instead of addressing the root cause, similar to running an air conditioner at home while the windows are open.

As data centers add more power to operate AI workloads, it becomes critical to evaluate and optimize cooling performance. Improving airflow management to eliminate bypass airflow and hot spots enables operators to maximize existing cooling capacity, lower energy costs, and maintain thermal compliance without additional infrastructure. In many facilities, existing cooling equipment is more than sufficient if managed correctly.

The Path Forward

Optimizing cooling efficiency starts with understanding current airflow conditions and identifying where energy is being wasted. Implementing best practices such as sealing cable openings, balancing supply and return airflow, and improving containment can help right-size cooling capacity and support higher rack densities without additional cooling equipment.

By taking steps to improve airflow management and optimize cooling performance, data centers can operate more efficiently within existing power constraints. This not only reduces operating costs but also extends the lifespan of existing infrastructure, improves reliability, and supports sustainability goals as the industry continues to expand to meet AI and cloud demand.