Data Center Powering Models 2025

Data centers are driving the first meaningful growth in electricity demand in developed economies in decades, and power has become the top constraint on where they get built. This report examines how developers, utilities, and power producers are working together to bring capacity online.

Drawing on case studies and interviews across the data center value chain, it compares powering strategies, from clean tariffs and large backup systems to off-grid generation, and shows how AI demand can accelerate clean firm power.

• Developers now prioritize sites with grid access and generation over clusters and fiber.
• In congested US grids, data centers offer grid services, added capacity, or local investment to win over utilities and governments.
• Purpose-built clean tariffs can shield other ratepayers and secure long-term clean firm power.
• Large backup power systems let data centers come online before a grid connection is approved.
• Off-grid power offers speed and control but carries higher outage risk.