Data Center Construction Demands Are Surging But Power, Permitting, and Planning Are Holding It Back
The demand for data center construction in the U.S. is surging due to artificial intelligence, cloud services, and low-latency connectivity needs. However, challenges in power capacity, permitting, and skilled labor are hindering progress. Key insights reveal the complexity of these issues and the extensive planning needed to execute successful deployments.
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Key takeaways
Power and cooling are the major constraints in data center construction.
Permitting challenges arise from routing through restricted areas.
Comprehensive planning is essential for efficient data center deployment.
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Explosive demand for artificial intelligence, cloud services, and low-latency connectivity is reshaping the landscape for data center construction in the U.S. With hyperscalers and enterprises alike racing to deploy infrastructure closer to end users, new builds are increasingly challenged by the need for high-capacity power, complex permitting, and skilled labor. According to CBRE, U.S. data center inventory grew by 26% in 2023, and capacity constraints are expected to continue as AI-related workloads surge through 2025.
U.S. data center inventory grew by 26% in 2023, and capacity constraints are expected to continue as AI-related workloads surge through 2025.
So, what does it take to get a data center online today, and what's keeping many projects from starting?
This episode of Pro AV Today dives into that question with Syed Hussain, Senior Director of Business Development and Strategic Partnerships at Dycom Industries, a nationwide telecom construction company. Host Ben Thomas speaks with Syed on-site at Connected America 2025 about fiber, power, cooling, and why planning for edge deployments starts years in advance.
Key Topics Covered:
- Power and cooling are the primary constraints: While fiber placement can be complex, the bigger bottlenecks are finding enough energy and keeping chips cool at scale.
- Permitting remains a challenge: Running fiber often requires routing through railways, tribal lands, and other restricted areas, adding time and risk to already tight deployment windows.
- Planning is everything: From chip supply to project sequencing, organizations entering the data center construction space need to plan years to execute effectively.
Syed Hussain is a seasoned telecom infrastructure executive with over 25 years of experience in engineering, network planning, construction, and operations. He has led large-scale fiber and broadband deployment projects across the U.S., overseeing multi-million-dollar capital budgets and teams of directors, managers, and technical staff at companies like Comcast, CenturyLink, and now Dycom Industries. His expertise spans strategic planning, municipal permitting, vendor coordination, and leadership development, with a consistent track record of delivering high-impact network builds on time and within budget.
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About the author
Ben Thomas serves as Head of Pro AV at MarketScale, where he leads content and media strategy for the pro AV sector. With over 15 years of award-winning experience across large-scale events, network television, OTT platforms, and podcasting, he has guided major B2B brands including Intel, Sennheiser, Samsung, and Philips to billions of content interactions. He holds a B.A. in Mass Communications and is recognized for his expertise in podcast hosting, public speaking, marketing, and content strategy.
