AI Power Needs Threatened by Transformer Shortage, WoodMac Says

Efforts to meet booming US power demand from artificial intelligence will be hindered by a growing shortage of transformers, according to energy consulting firm Wood Mackenzie.

Demand for power transformers, components that are necessary to deliver energy across the grid, will exceed supply in the US by as much as 30% this year, Wood Mackenzie said in a report Thursday. The deficit is driving up costs and extending timelines for power projects, and the supply constraints are expected to persist into the 2030s.