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Foley 2026 Data Center Development Report
AI Boom and Data Center Trends: What’s Next?
Artificial intelligence is fueling unprecedented growth in the U.S. economy and driving a
surge in data center development. But critical questions remain: Is this an AI bubble?
Can this wave of data center expansion be sustained? And how will we secure the
energy infrastructure to power it?
The Foley 2026 Data Center Development Report delivers insights into data center
trends, AI infrastructure challenges, and energy solutions. Based on survey responses
from over 100 industry experts and executives, plus exclusive interviews with leading
voices, this report explores the opportunities and risks shaping the future of digital
infrastructure.
Key takeaways from the report:
- More than 60% of respondents anticipate a strategic correction in the data center market by 2030. Yet respondents remain confident in the ability to meet rising compute demand: only 5% believe the industry won’t be able to do so by 2030.
- Energy supply is the dominant challenge. Roughly half of all stakeholders see energy availability and redundancy as the greatest obstacle to data center development — both today and over the next few years.
- Regulatory and permitting is the most common point of project breakdown, highlighting the need for earlier, more consistent engagement with public officials and development authorities. Without close collaboration, even well-financed projects risk delays tied to power access, land use, and environmental approvals.
- Advances in energy efficiency and cooling technology — plus expansion into new geographies — will drive future growth. Respondents see these three factors as the greatest opportunities for data center development and see the ideal energy mix as dominated by renewables and battery storage — complemented by natural gas, nuclear power, and other low-carbon sources.
- Developers, providers, and operators face divergent hurdles now, but agree on the main challenges ahead. Stakeholders cite different top obstacles: permitting issues for developers (53%), supply chain issues for providers (65%), and construction costs for operators (50%). However, all three groups see energy availability and redundancy as the greatest obstacle between now and 2030.
The full report will be available in January – sign up to get it delivered to your inbox.