Vinson & Elkins Survey Finds AI Infrastructure Investments Accelerating — But Power Constraints Are Forcing a Fundamental Rethink of Where and How Growth Happens

Survey reveals investor confidence remains strong even as power limitations reshape development strategies

Vinson & Elkins today released findings from its AI Power & Infrastructure Pulse Survey, highlighting a defining tension in the next phase of AI-driven growth: while capital continues to flow aggressively into data center development, power availability is a critical constraint reshaping the market.

The survey, conducted in March 2026, which polled 200 senior infrastructure developers and private capital investors, shows overwhelming confidence in near-term investment alongside near-universal concern that existing power infrastructure cannot keep pace.

Key findings include:

• 89% of investors believe current AI data center capital expenditures are sustainable over the next 1–5 years
• 96% of infrastructure developers expect power constraints to shift data center development to new geographies
• Almost all developers and investors say the current pace of growth risks outstripping available power infrastructure
• More than 80% of respondents report increased adoption of hybrid and off-grid energy solutions, including microgrids and on-site generation

Do you believe the current pace of AI-driven data center development risks outpacing available power infrastructure?

“What is emerging from this data reflects a market that is not slowing down, but is instead becoming more complex,” said Vinson & Elkins Partner Kaam Sahely, who has represented numerous power companies, data center developers and investors in infrastructure projects across the U.S. and abroad. “The winners will be those who can anticipate where power, capital and technology intersect—and move ahead of those constraints, not react to them.”

The findings point to a market recalibrating in real time. While nearly all respondents say power infrastructure is somewhat prepared for AI demand, they simultaneously acknowledge that transmission limitations, permitting challenges and interconnection delays are already reshaping development decisions.

“Investor confidence remains strong, but it’s becoming more disciplined,” said Eamon Nolan, partner at Vinson & Elkins, who has worked on the financing of power and data center developments in the U.S., Europe and Latin America. “Capital is still there—but it’s increasingly tied to fundamentals like secured power, long-term offtake agreements and sponsor strength. The question isn’t whether the AI buildout continues. It’s about ‘how’ and ‘who’ can execute in a power-constrained environment.”

The survey also highlights a structural shift in how projects are being financed and built. To improve “speed-to-power,” developers are prioritizing interconnection reform, while investors are focusing on private generation flexibility—signaling a move toward more decentralized and hybrid energy models.

The survey findings can be downloaded here. Respondents included experienced infrastructure developers primarily focused on energy, as well as senior, private capital investors, a majority of whom work at organizations with at least $50 billion in assets under management. The vast majority of respondents identified as the primary decision maker on energy developments and infrastructure investments at their organizations. 

Vinson & Elkins has played an integral role in powering the digital future. In the last two years alone, the firm has signed or closed more than 75 data center and power transactions, totaling approximately $125 billion in value. Members of the firm’s Data Center Practice team have advised on transactions in more than 30 jurisdictions across the globe, including the Americas, Europe, Asia, Africa and the Middle East, many of which have been complex cross-border deals.

About Vinson & Elkins
For more than a century, Vinson & Elkins has provided outstanding client service across important industries that drive the global economy. Built on a strong culture of collaboration across 14 offices worldwide, V&E lawyers are committed to excellence, offering clients decades of legal experience in handling transactions, investments, projects and disputes across the globe. Learn more by visiting www.velaw.com or connect with us on LinkedIn.

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