North America's Power Grid Faces Supply Crisis as Demand Surges

Data centers, reshoring, and electrification drive rapid growth, outpacing new generation capacity

Mar. 16, 2026 at 11:48am

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North America's power grid is facing a supply crisis as data centers, reshoring of manufacturing, and growing electrification of transportation and cooling loads drive a surge in electricity demand that is outpacing the industry's ability to build new generation capacity. S&P Global Energy experts warn the next 18 months could be the most consequential period for energy investment in decades, with natural gas turbine orders hitting a 20-year high, renewable energy facing headwinds, and affordability concerns threatening to disrupt decarbonization efforts.

Why it matters

The rapid growth in electricity demand, driven by the proliferation of data centers and other factors, is putting significant strain on North America's power grid, raising concerns about reliability and affordability. This crisis could have far-reaching implications for the region's economic competitiveness, energy transition, and efforts to address climate change.

The details

Just a few years ago, 10-year load growth projections were below 1% annually, but today S&P Global Energy forecasts 2.5-3% growth or higher. Data centers alone are driving a wave of new demand, with a surge of facilities set to hit the grid in Ohio within the next 3-4 years. Reshoring of manufacturing, electrification of transportation, and growing air conditioning loads are also contributing to the demand spike. In response, the natural gas turbine market has seen a resurgence, with 2025 orders hitting levels not seen in 20 years. However, supply chain constraints have doubled the cost of building new combined cycle plants, leading some developers to turn to gas reciprocating engines or natural gas fuel cells. Renewable energy, particularly onshore wind, is facing headwinds from policy changes and rising local opposition, while offshore wind projects are grappling with increasing complexity and costs.

  • In 2025, U.S. gas turbine orders hit a cyclical high of 43 GW, the highest level in 20 years.
  • Over the next 3-4 years, a wave of new data centers is expected to come online in the Columbus, Ohio metropolitan area.

The players

S&P Global Energy

A leading provider of data, analytics, and insights for the global energy industry.

Hill Vaden

Executive Director of Energy Capital Insights at S&P Global Energy.

Doug Giuffre

Executive Director of North American Power Markets Analysis at S&P Global Energy.

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What they’re saying

“The water's boiling, the frog is dead, and now industry is having to respond, and having to respond quickly.”

— Hill Vaden, Executive Director of Energy Capital Insights (The POWER Podcast)

“We haven't seen those type of numbers in 20 years from the last merchant power boom in the early 2000s.”

— Doug Giuffre, Executive Director of North American Power Markets Analysis (The POWER Podcast)

What’s next

S&P Global Energy is hosting its Global Power Markets Conference in Las Vegas, Nevada from April 13-15, 2026, where industry experts will dive deeper into the trends shaping the power sector.

The takeaway

The surge in electricity demand, driven by data centers, reshoring, and electrification, is outpacing the power industry's ability to build new generation capacity, leading to a supply crisis that could have significant implications for the region's economic competitiveness, energy transition, and efforts to address climate change.