Jackson Walker partner Matthew Penny was featured in Law360 discussing how surging data center demand is colliding with shortages of power equipment and a constrained construction workforce—pitting developers against utilities and power producers for transformers, turbines, and EPC capacity.

Matthew commented, “[j]ust having a reservation agreement [for a spot in the equipment fabrication line] is very valuable, because it’s so difficult to get on the queue. For that matter, we have clients that have signed up to purchase equipment, and if their project doesn’t go forward, they’re going to turn around and sell the equipment.”

That competition is inflating costs, pushing deliveries of critical equipment into 2028–2029, and triggering cascading delays across both data center construction and the generation projects that will power them. Attorneys and industry surveys describe a self‑reinforcing cycle in which developers pursue the same scarce equipment and labor, projecting delays that jeopardize near‑term build schedules and undermine longer‑term market stability.

For further insights, read the Law360 article, “Data Center Builders, Power Suppliers Duel For Project Needs.”

Meet Matthew

Matthew Penny advises on the development and construction of energy and infrastructure projects, from co-located energy supply for data centers and other digital infrastructure to renewables, oil and gas, and power generation and transmission. He brings end-to-end experience on midsize to mega projects—including contractor management—and guides clients on contracting strategy, remuneration models, supply chain optimization, and project financing to achieve commercially successful delivery.