Power Infrastructure Construction Activity Surges Despite Supply Chain Constraints

KEY POINTS

• Power infrastructure construction is forecasted to see sustained growth through 2027.

• The data center construction boom demands plentiful power infrastructure.

• Supply chain constraints pose a potential threat to near-term energy projects.

According to the US Energy Information Administration, national electricity prices reached 14.38 cents per kilowatt-hour in July 2025, a 5.0% increase from the previous year. This price increase impacts construction operations and project costs, particularly energy-intensive material prices.

The current energy price environment coincides with a record run of data center construction activity. Meanwhile, power infrastructure construction starts are forecasted to see solid growth through 2027. These trends reflect evolving dynamics in both electricity consumption and power infrastructure investment.

Power infrastructure 5-year compound annual growth rate shown in this chart with actual construction starts through Q3 2025 and forecasted starts through 2027. These trends reflect evolving dynamics in both electricity consumption and power infrastructure investment. Image: ConstructConnect

Construction professionals monitoring these developments closely may note that they create multiple market impacts, including expanding project opportunities from rising power demand, elevated costs for energy-intensive materials, and extended procurement time for important energy infrastructure inputs.

Data Center Construction Boom

Data center construction has rapidly grown this year. July established a new monthly high of $14.0 billion in construction starts, according to ConstructConnect’s data center report. Year-to-date spending through July totaled $26.9 billion, positioning 2025 to potentially exceed $46 billion in total annual starts spending.

These facilities require substantial electrical capacity, with Deloitte analysis indicating that data centers account for around 2% of global electricity consumption. Current projections estimate that the 536 terawatt-hours of consumption in 2025 will nearly double by 2030.

The magnitude of energy required to meet demand necessitates corresponding power generation and transmission infrastructure expansion, creating potential downstream construction opportunities for industry professionals.

Power Infrastructure Construction Responds to Demand

Based on ConstructConnect’s construction starts data, annual Power Infrastructure starts are projected to reach $30 billion by 2027, a 27.9% increase from 2025’s level of $23.5 billion. 

The ConstructConnect forecast suggests continually rising construction activity in power infrastructure segments. This activity correlates directly with data center construction expansion and accelerating power demand across the country, creating project opportunities for construction firms.

Equipment Supply Chain Constraints

Supply chain constraints for important electrical equipment present ongoing challenges for energy infrastructure projects. According to a UtilityDive analysis, transformer delivery timelines currently range from 80 to 120 weeks, with large transformers requiring up to 210 weeks for manufacturing and delivery.

Energy demand growth will seemingly continue to grow through the decade’s end, driven by data center expansion and electrification trends. However, extended procurement timelines for critical electrical equipment present potential risks to meeting this expanding demand. Supply chain limitations require attention from construction professionals when considering project and material management.

Energy Sector Outlook

Current market conditions show the convergence of rising energy needs and elevated infrastructure construction demand, creating opportunities for construction firms with electrical infrastructure capabilities.

Power infrastructure and data center construction maintain strong growth trajectories supported by demand for digital infrastructure expansion and industrial electrification.

Construction professionals can closely monitor these energy infrastructure trends, balancing supply chain risks against substantial market opportunities. Despite equipment delivery challenges, the projected $30 billion annual power infrastructure market by 2027 represents growth potential for contractors positioned to serve accelerating energy demand.

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