Energy Strategy is Becoming the Defining Constraint for Digital Infrastructure and Data Centre Growth
Digital infrastructure and data centre growth faces a major barrier as the energy transition increasingly shapes what is achievable.
As data centres expand to support energy-intensive digital services and new technologies, the question facing developers and investors is whether the energy system can support that demand at the speed, scale, and reliability required. In the United States, data centre power demand is projected to grow by 15 to 20 per cent annually through 2030, adding an estimated 30 to 50 gigawatts of load, equivalent to powering several large cities. Europe is experiencing similar growth, with data centre power demand expected to increase by 10 to 15 per cent annually, particularly in Ireland, the Netherlands, and the Nordics.
Across Season 10 of Conversations in Cleantech, we’ve explored this intersection in detail. Two conversations were particularly instructive. Both Phillip Sandino, Senior Vice President of Utility Development at Tract, and Gene Alessandrini, Senior Vice President of Energy at CyrusOne bring their unique perspectives on utility development and data centre operations to address why digital infrastructure can no longer be planned independently of energy strategy.
Power as a Strategic Constraint
Historically, digital infrastructure development, particularly with data centres, began with location. Developers were looking for customer demand and real estate availability. Power followed the site.
That model no longer holds true. As Gene explains, the scale of new data centre requirements has shifted the industry from a relatively linear utility application process into a far more complex environment. Timelines that may once have sat in a two-to-three-year window can now extend significantly.
This has turned power into three things at once:
A constraint: Growth is limited by where capacity can realistically be delivered.
A differentiator: Operators that can structure and deliver power at pace are better positioned to meet customer demand.
A risk function: The capital required to support generation, utility infrastructure, and grid connection can materially change the economics of a data centre project.
This changes the nature of strategic decision-making. Energy strategy is no longer a procurement function sitting downstream of development. It is central to commercial outcomes and long-term growth.
Episode 1 with Phillip Sandino focuses on utilities and the challenge of keeping large-scale infrastructure projects moving without losing stakeholder trust.
Listen to Episode 1From Bringing Power to Site, To Bringing Site to Power
Another important shift in digital infrastructure is the changing relationship between site selection and energy availability.
In established markets, customers traditionally prefer certain geographies because of latency, network density, availability zones, tax conditions, or proximity to existing infrastructure. But as power constraints tighten, flexibility is increasing. Developers and operators are beginning to look beyond traditional data centre hubs and into markets where energy availability or generation opportunities are more favourable.
Gene describes this as a move towards power-driven location strategy. When customers can be flexible on geography, digital infrastructure and data centres can follow power rather than waiting for power to arrive at constrained sites.
Phillip reinforces the same point from the developer perspective. At Tract, the concept of “powered land” involves master planning large land aggregations with a clear path through entitlement, permitting, water, power, utility infrastructure, and stakeholder engagement.
This more disciplined model matters because the market can no longer rely on stranded capacity being available when a project reaches maturity. It also gives the market a clearer route towards commercially viable digital infrastructure at scale.
Grid Planning, Reliability, and Execution Risk
The utility side of digital infrastructure growth is often underestimated. Large data centre loads are not simply bigger versions of traditional commercial demand. In many cases, they require a long list of equipment upgrades and multi-year coordination between developers, regulators, and communities.
This is why credibility is such an important factor. Utilities and regulators need to understand which projects are real, which are speculative, and which should influence infrastructure investment decisions.
For developers, that means concentrating on essential signals of project maturity. Phillip’s view is that progress depends on a more collaborative and staged model involving binding infrastructure obligations and early procurement, once project credibility has been demonstrated. This creates a more disciplined pathway for digital infrastructure development, while giving utilities greater confidence to plan around future load.
Grid reliability adds another layer of complexity. As data centre campuses grow in scale, how they connect without destabilising the wider system or creating unacceptable cost allocation challenges is crucial.
The energy transition means that power systems engineering and energy planning can no longer sit downstream of development. It must be embedded into site strategy, customer commitments, risk assessment, and stakeholder engagement from the outset.
Episode 4 with Gene Alessandrini explores how power availability is a strategic constraint for data centre operators, influencing growth, location strategy, and long-term credibility.
Listen to Episode 4Renewable Procurement and Leadership Capability
The route to credible renewable procurement and sustainable data centres is also more complex than previously. Operators may have long-term carbon neutrality goals, but new data centre load can come online faster than new renewable power generation can always be delivered.
This creates a gap between immediate power requirements and long-term clean energy commitments. Bridging that gap requires a more sophisticated procurement strategy focused around early growth built on both short-term and long-term products and working with partners who can shape renewable supply around operational demand.
Gene shows why this is now a leadership issue. Digital infrastructure and data centre leaders must balance investment risk with their sustainability commitments and consumer expectations simultaneously, and in the face of growing customer expectations.
Doing so requires different leadership capabilities, and leadership is now a strategic differentiator. The ability to connect power, capital, policy, and execution will increasingly determine which projects move forward, and which remain constrained by the system around them.
Key Strategic Insights
As Phillip and Gene both make clear, the future of data centre growth will not be determined by digital demand alone. It will be determined by the ability to secure and structure power responsibly.
For organisations building, investing in or advising on digital infrastructure, several priorities stand out.
Build energy strategy into development from the start
Power availability should shape site selection, commercial planning and customer commitments, not sit behind them.
Treat utilities as strategic partners
Credible digital infrastructure development depends on transparent engagement, realistic phasing and shared understanding of infrastructure requirements.
Prove project credibility early
Land control, entitlement, equipment access, capital commitments and clear timelines are becoming essential signals for utilities, regulators and stakeholders.
Plan for renewable procurement complexity
Carbon neutrality commitments require credible sourcing strategies that bridge immediate power demand with secure, long-term clean energy supply.
Strengthen leadership capability
Digital infrastructure growth needs leaders who can turn power availability and regulatory requirements into clear plans for building and operating data centres.
Why Does Energy Flexibility Matter More Than Ever?
The wider season shows that digital infrastructure and data centre growth will increasingly depend on more flexible approaches to energy.
Episode 3 explored how investors are assessing infrastructure through the lens of capital discipline and power access, whilst mitigating long-term risk.
Episode 8 looked at how AI-driven energy market optimisation can help balance storage and grid flexibility.
Episode 9 considered how co-locating compute with renewable energy, including curtailed or underutilised generation, could create new models for scalable infrastructure.
Together, these perspectives point to a broader shift in thinking towards energy strategies that integrate capital, flexibility, location, and execution.
Listen to the Full Conversations
Hear more from Phillip Sandino and Gene Alessandrini in Season 10 of Conversations in Cleantech, where we explore how digital infrastructure is being financed, built, powered, and operated across the energy transition.
Building Teams for the Energy Transition and Digital Infrastructure Landscape
Brightsmith connects organisations with the leadership and talent needed to succeed in digital infrastructure and the energy transition. From our London and Austin hubs, we partner with purpose-driven companies across clean power, digital infrastructure, data centres, and clean energy investment.
We believe it is the people that are shaping the transition. That’s why we offer executive search alongside flexible team-building solutions designed to help organisations scale effectively. Whether you need interim experts or embedded talent, our adaptable services support organisations at every stage.
Our Permanent Recruitment service secures specialist talent aligned with culture and strategy to support sustainable growth. Across all services, we focus on sector expertise and purposeful alignment to help clients build resilient teams that make a lasting impact.
Our clients gain leadership that fuels progress, teams equipped to manage complex projects, and talent solutions that evolve with their needs.
If you’re looking to grow your team, whether it’s one hire or a full group, or need interim support or a long-term partner to navigate the energy transition, Brightsmith can help you find the right solution. Contact us to start a conversation.
