Denser Racks and Grid Delays Force an Infrastructure Rethink for the Data Center Industry

As grid connections are delayed, some operators turn to on-site generation. As racks grow denser, others upgrade electrical systems

Denser Racks and Grid Delays Force an Infrastructure Rethink for the Data Center Industry
Photo of, from left, Cirrascale CEO Dave Driggers, Uptime Institute Vice President Naveed Saeed, Power and Data Management CEO Jake Ring, DRW's Mike Bahr and Microsoft's Sonia Hingorany at AI Infra Summit in Santa Clara, Calif., on Sept. 16, 2026.

SANTA CLARA, Calif., Sept. 16, 2026 – Grid delays in Texas pushed one artificial intelligence infrastructure company to generate its own electricity. AI infrastructure firm Crusoe constructed a 300-megawatt gas turbine plant to supplement utility service at its Abilene data center campus.

Photo of Crusoe Chief Data Center Officer Chris Dolan (left), and Dynamix Corporation Chair and CEO Andrejka Bernatova 

The plant supplements limited utility power while Crusoe waits for additional grid capacity, Chief Data Center Officer Chris Dolan said Wednesday. The company is serving the first 1.2 gigawatts of the campus through a combination of grid electricity and power generated at the site.

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