AI's Next Bottleneck Is Power, Not Chips

A new TrendForce AI server industry study says the next big bottleneck for AI is shifting from chips to power and the grid. AI servers are expected to make up about 25% of data center power demand in 2025, rising to about 33.4% in 2026 and possibly over 40% in 2027.

Global data center power demand is estimated at about 161 GW in 2026, up about 31% year over year, but grid connections and transmission buildout may not keep pace. Power access, transformers, transmission lines and cooling capacity could all delay new data center launches.

Under TrendForce's scenario, data center demand could reach 490.7 GW by 2030, while the grid may supply only about 222.6 GW, leaving a gap of roughly 268 GW. The supply-demand gap is expected to widen after 2028.

Google CTO Amin Vahdat also said at SEMICON Taiwan 2026 that AI computing is increasingly limited not by making chips, but by finding enough power.