The ballooning appetite for data centers and the electricity needed to power them is pitting developers against each other for construction equipment and a workforce, creating a cycle that may ultimately be a drag on development.

Attorneys told Law360 that electricity and data center developers are increasingly competing to secure key pieces of power equipment, as well as the engineering, procurement and construction firms that build their projects. That's driving up project costs and, in many cases, lengthening their timelines.

"Utilities and other power providers have significantly lengthened schedules for power delivery, interconnection and related infrastructure," said Duane Morris LLP partner Robert Montejo, who focuses on data center development. "At the same time, contractual delivery deadlines for data centers — under build-to-suit leases and project site agreements — are increasingly being pushed out."

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