Data Center Investment Under Delayed Power Supply

When AI demand grows faster than electricity infrastructure can be built, where, when, and how much should we invest?

Blackstone Advanced Systems’ technical paper, “Data Center Investment Under Delayed Power Supply,” examines that question through a framework that jointly plans power capacity, computing capacity, location, and investment timing.

Starting with existing facilities, the study compares waiting for scheduled power, expanding the central data center, adding capacity at smaller regional sites, and allowing a combination of central and regional expansion.

The simulations show why the distinction matters: regional capacity can deliver more AI service, but require more spending. Central expansion can be preferable when remote processing is feasible. When services require local execution, regional capacity becomes more valuable.

For investors, utilities, and policymakers, the framework makes the tradeoffs explicit: how much service is delivered or delayed, what additional investment and operating costs are incurred, and who bears those costs.

The findings are conditional results from illustrative simulations—not forecasts for a specific project.

#DataCenters #AIInfrastructure #PowerSystems #InfrastructurePlanning

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