Data Center Market Entry and Power Strategy

Quick answer: Data center market entry and power strategy answers two linked questions: which country or metro to enter next, and how to secure the electricity to operate there on a date you can plan around. DC Market Insights runs this work for operators, developers, hyperscalers and investors who need a market choice that still holds once the grid, the regulator and the competition have had their say.

Power has replaced land and demand as the item that sets the timetable. The International Energy Agency expects data center electricity use to rise from 415 TWh in 2024 to around 945 TWh by 2030, and warns that around 20% of planned data center projects could be at risk of delay unless grid risks are addressed. The same report notes that wait times for transformers and cables have doubled in the past three years.

The queues show the scale of the problem. In Texas, ERCOT had received more than 233 GW of large-load interconnection requests by late 2025, nearly 300% more than at the end of 2024, with data centers behind more than 70% of them, according to Utility Dive. In Great Britain, a call for input on demand connections run by the National Energy System Operator (NESO) drew responses covering more than 90 GW of demand, and data centers accounted for over half of it. A market that looks attractive on demand can still be the wrong choice if its grid cannot deliver in time.

DC Market Insights is the data center practice of Credence Research, a research and consulting firm founded in 2015 with 200+ analysts and consultants and 450+ consulting projects a year.

What is a data center market entry and power strategy?

It is a decision study that ranks candidate countries and metros on the power they can actually deliver, the demand they can absorb and the route a new entrant can use to get in, and then sets out how to secure the megawatts. The output is a shortlist, a power plan and an entry route, each with the evidence behind it.

Most market entry studies stop at demand: how big the market is and how fast it grows. That is necessary but no longer enough. Two metros with the same demand can differ by years in how soon a new campus can be energised, and by a wide margin in what that power costs and under what conditions it is granted. Our work puts power and regulation into the same scorecard as demand, price and competition, so the market you choose is one you can actually build in.

The work also connects to the services around it. Once a market is chosen, site selection narrows it to specific plots; market sizing puts a defensible number on demand; and competitive intelligence maps who is already building there.

Why is power now the deciding factor in market entry?

Because demand for data center electricity is growing faster than grids can connect new load: the IEA expects consumption to more than double between 2024 and 2030, and it names grid connection queues and equipment lead times as the main reasons projects slip.

Grid queues are long and getting longer

The IEA describes grid connection queues for both supply and consumption projects, including data centers, as “long and complex”. The figures from individual system operators bear this out. ERCOT’s large-load requests rose nearly 300% in a year. In Great Britain, NESO found that only 32% of data center projects responding to its demand call for input had secured an off-taker, while around 40% of all projects were seeking energisation before 2030. A queue full of speculative requests slows down the real ones, which is why grid operators are tightening the rules.

Forecasts of load growth have jumped

PJM, which runs the grid across much of the eastern United States, now forecasts summer peak demand to grow 3.6% a year over the next ten years, against a ten-year growth rate of 0.3% a year in its 2021 forecast. PJM names data centers as the main driver, and has started to require firmer commitments before it counts large loads in its near-term forecast. For an entrant, that means the paperwork needed to be taken seriously by the grid is rising.

Some markets are already close to their limit

Ireland shows how quickly data centers can come to dominate a national grid. Data centers used 22% of all metered electricity in Ireland in 2024, up from 5% in 2015, according to the Central Statistics Office. That was more than all urban households combined, which used 18%. When a sector reaches that share, connection policy becomes national policy, and the terms of entry change.

What does the market entry and power service cover?

It covers five questions in a fixed order: where demand will be, where power can be delivered, how to secure that power, which route gets you into the market, and which rules could change the answer. Each section ends in a number or a ranked list, not a paragraph of opinion.

1. Market screening: which countries and metros deserve a closer look?

We start wide and narrow quickly. Candidate markets are scored on demand, supply, vacancy, price, power, regulation, fiber and the presence of the tenants you want to serve. Demand comes from our published market models, built from hyperscale and cloud expansion, enterprise outsourcing, AI training and inference, and edge needs. Vacancy tells us how tight a market is today: CBRE reported primary-market vacancy of 6.6% in Q1 2025, down 2.1 percentage points in a year. Tight markets support rents but draw new supply, so we show when the gap is likely to close.

Market depth matters too. The United States had 5,381 data centers in March 2024, more than the next nine countries combined, according to Cloudscene data published by Statista. Germany (521), the UK (514) and China (449) followed. A deep market offers more tenants and more exit buyers, but also more competitors and longer queues.

2. Power availability: how much capacity can the grid deliver, and when?

We map the grid capacity a market can offer new data center load: substation headroom, planned transmission reinforcement, the size and maturity of the connection queue, and the operator’s published rules for large loads. The output is a dated view of deliverable megawatts by market and, where the data allows, by grid zone, with a confidence grade for each date.

This step is where most entry plans change. A metro that ranks first on demand can drop down the list once its connection timeline is known, and a second-tier market with spare grid capacity can move up.

3. Power sourcing: how can you secure the megawatts?

We test every realistic way of getting power to the site, alone and in combination:

• Grid connection. Queue position, connection offer terms, firm versus non-firm capacity, phased or ramped energisation, and the reinforcement works the offer depends on. NESO reports that 81% of projects responding to its call for input were open to alternative arrangements such as phased, ramped or non-firm connections.
• On-site generation. Gas engines or turbines, fuel cells and battery storage, used as bridging power until the grid arrives, as permanent supply, or as a condition of connection. We look at fuel supply, permits, emissions limits and how on-site plant fits the operator’s carbon targets.
• Power purchase agreements and renewables. Corporate PPAs, green tariffs and certificates, and what each can and cannot claim. The IEA expects renewables to meet half of the global growth in data center electricity demand to 2030, with natural gas expanding by 175 TWh, so most markets will rely on a mix.
• Alternative supply. Private wire arrangements, co-location with existing generation, and longer-term options such as nuclear supply agreements, assessed on what is permitted and bankable in each market today rather than what is announced.

The output is a power plan for each shortlisted market: the sources, the megawatts each can provide, the date each can be in place and the main risk to that date.

4. Entry route: build, buy, partner or lease?

The right route depends on how much time you have, how much capital you want to commit and how much control you need. We compare the four routes on the same terms for each market.

In markets where connection queues are long, buying an operating asset or a site with a signed connection agreement can be the fastest way in. That makes power rights part of the price. Data center M&A reached a record USD 73 billion in 2024, according to Synergy Research Group, and buyers compete for the same scarce assets. Where the buy route leads to a transaction, our commercial due diligence service tests the target.

5. Regulatory and moratorium risk: what could change the rules?

We track connection policy, planning limits, energy efficiency and water rules, data residency requirements and incentives in each shortlisted market, and list the changes that could move your timeline or cost.

Ireland is the clearest recent example of rules changing the terms of entry. The Commission for Regulation of Utilities (CRU) published its decision on large energy user connections on 12 December 2025. As summarised by DLA Piper, new data center applicants must provide new on-site or nearby dispatchable generation that matches 100% of their maximum import capacity on a de-rated basis and takes part in the wholesale market. They must also provide or procure renewable electricity generated in Ireland equal to at least 80% of annual demand, with a six-year glide path from energisation. Applications are assessed partly on whether they sit in a constrained region of the grid.

A policy like this does not close a market, but it changes the cost of entry, the skills a developer needs and the type of operator who can compete. Our regulatory review flags these changes for each candidate market, with their status and likely timing, so they are priced in before you commit. For governments designing such rules, our policy advisory service works from the other side of the same question.

Who is market entry and power strategy for?

It is for any organisation that has to commit capital to a new data center market before it can be sure of power. The question changes by client type, so our scope does too.

• Colocation operators and developers choosing the next country or metro, and deciding whether to build, buy or partner. See our page for operators.
• Hyperscalers and cloud providers comparing regions on deliverable capacity and timing, and deciding between self-build and lease. See our page for hyperscalers.
• Investors and lenders backing a platform’s expansion into new markets, who need an outside view of whether the power plan is credible. See our page for investors.
• Equipment vendors deciding which markets to prioritise for power, cooling and rack products, based on where capacity will actually be built. See our page for vendors.
• Energy companies weighing on-site generation, PPAs or co-location with data center developers.

How does a market entry and power engagement work?

Every engagement runs in five steps, and each step produces something you can use before the next one starts.

1. Scope the decision. A call to agree the markets in play, the capacity you need, your target energisation date, your preferred entry routes and the cases to model. You receive a written scope and a quote.
2. Screen the long list. Our analysts score every candidate market on demand, supply, price, power and regulation, using our published models as the baseline. You receive a ranked long list and the reasons behind each rank.
3. Map power for the shortlist. For the leading markets we review grid operator and regulator publications, connection rules, queue data and planning records, and speak to utilities, developers, brokers and equipment suppliers. Every important assumption is checked against at least one independent source.
4. Build the entry plan. We build the power plan, compare the entry routes and model base, upside and downside cases for timing and cost, with every figure traced to its input.
5. Present and stand behind it. A findings session with your team, and with your board, investment committee or lenders if needed. Follow-up questions are answered after delivery.

What you receive

DC Exclusive: how does our model library sharpen a market entry decision?

It gives every candidate market a tested demand and supply baseline from day one: 519 published market models, each with history from 2020, a 2025 base year and a forecast to 2035, in global, regional and country editions. That lets our team spend its time on the power and regulatory questions that decide the shortlist.

The library is organised in five layers, and a market entry study draws on all of them:

For example, our Iberia Data Center Market report values the Spanish and Portuguese market at USD 11.53 billion in 2025, a natural starting point for an operator weighing southern Europe. Our UK Data Center Thermal Management Market report shows London and Slough holding more than 65% of UK cooling spend, a reminder of how concentrated demand, and therefore grid pressure, can be within one country.

Three proprietary datasets are in development and will feed future entry studies: a Capacity Tracker (live and pipeline MW by country, city and operator), a Colocation Price Index (USD per kW per month by market) and a Deal Tracker (M&A, funding, land and power deals).

How do we make sure the market numbers hold up?

We build every demand figure two ways and only use it when the two agree. The same method sits behind our published reports, which is why the baseline can be reused with confidence.

• Bottom-up: we count the market from the supply side: installed and pipeline capacity, operator revenue, contract values and equipment shipments, market by market.
• Top-down: we work down from larger totals such as electricity use, IT spend and construction spend, and the share that data centers take.
• Reconcile: where the two results differ, we find the input that is wrong and fix it, rather than averaging the gap away.
• Power cross-check: demand in each market is tested against what the grid operator says it can connect. A demand forecast that the grid cannot serve is a forecast of unmet demand, and we show it that way.
• Time frame: history from 2020, a 2025 base year and a forecast to 2035, so you can see how a market has moved before trusting where it is going.

Every figure in the report is traced to a filing, a grid operator or regulator publication, a public dataset, an interview or a stated assumption.

Who works on market entry and power strategy?

A named senior team leads every engagement, with our wider bench of analysts behind them.

• Satyabrat Rajawat, Senior Research Analyst, Strategic Advisory. Satyabrat covers power, cooling and rack equipment, the upstream markets that decide build cost, lead times and on-site power options. He works from trade data, company filings and equipment teardowns, and has contributed to more than 40 syndicated market studies.
• Priyanka Mor, Senior Consultant. Priyanka leads market entry feasibility, cross-border commercial due diligence, TAM/SAM/SOM and M&A screening engagements, and is our principal methodology reviewer. She has more than 15 years in market research and consulting.
• Deepti Agrawal, Senior Editor, Research. Deepti is the final quality gate for our reports and consulting work. She checks models, growth rates and company profiles, and owns our house style.

Which questions should you ask before entering a new data center market?

Ask the questions that decide when revenue starts, not just how large the market is. These are the ones we test first:

• What is the realistic energisation date? Is it backed by a signed connection agreement, or by a utility letter and a queue number?
• Is the capacity firm? A non-firm or phased connection can be the fastest way in, but it changes what you can sell to tenants.
• What will on-site power cost and who must own it? In some markets on-site generation is optional bridging power. In Ireland it is a condition of connection.
• Can the power be called clean? Check what the market’s PPA, certificate and grid-mix rules let you claim, and whether local rules set a minimum.
• Who else is in the queue? The same grid zone may hold competing requests for many times the capacity it can deliver.
• What could change before you open? Connection rules, planning limits and incentives are moving in many markets at once.

Which DC Market Insights research supports market entry and power strategy?

Every engagement links back to the published reports for the markets involved, so you can see our baseline before we tailor it. Useful starting points:

• Iberia Data Center Market, valued at USD 11.53 billion in 2025, for demand in Spain and Portugal
• UK Data Center Thermal Management Market for cooling capex and how concentrated UK demand is
• OCP Rack Market, valued at USD 1.63 billion in 2025 and forecast at USD 13.34 billion by 2035, for hyperscale equipment demand and power density
• The full data center research library, organised in five layers
• Our consulting overview for the other services that follow a market decision

Frequently asked questions

What does a market entry and power strategy cost?

Fees are quoted per engagement and depend on the number of candidate markets, the depth of power and regulatory review and the deadline; you receive a written quote after the scoping call.

How is this different from site selection?

Market entry chooses the country or metro and the route in. Site selection then compares specific plots within the chosen market on grid connection, land, fiber, water, permits and incentives. Many clients run the two in sequence, and the power work carries over from one to the other.

Can you tell us how long a grid connection will take?

We give a dated view of when power is likely to be available, with a confidence grade, based on the grid operator’s published rules and queue data, planning records and conversations with people who work in the market. We do not replace the connection offer itself, which only the grid operator or utility can issue.

Do you cover on-site generation and PPAs?

Yes. We assess on-site generation, battery storage, corporate PPAs, private wire and other supply options for each shortlisted market, including what local rules permit and require. We work alongside your engineering, energy and legal advisers on design and contracts.

Which markets can you cover?

Our 519 published reports cover global, regional and country markets across the whole data center value chain, and our client base spans Europe (45%), the Americas (30%), Asia Pacific (13%) and the Middle East and Africa (12%).

Is our information kept confidential?

Yes. Client data and project findings are used only for your engagement, and confidentiality terms are agreed in writing before any data is shared.

How do we start?

Send us the markets you are considering, the capacity you need and your deadline through the form below. A senior consultant will reply within one business day to arrange a scoping call.

Sources

• International Energy Agency: Energy and AI, executive summary (2025)
• Utility Dive: ERCOT’s large load queue jumped almost 300% last year (6 January 2026)
• NESO: Demand Call for Input, summary of responses (March 2026)
• PJM Inside Lines: PJM’s updated 20-year forecast continues to see significant long-term load growth (14 January 2026)
• Central Statistics Office: Data Centres Metered Electricity Consumption 2024, key findings (10 June 2025)
• DLA Piper: New Irish large energy users connection policy (7 January 2026)
• CBRE: Global Data Center Trends 2025 press release (24 June 2025)
• Countries with the most data centers (Cloudscene via Statista, March 2024)
• Synergy Research Group: data center M&A deals broke all records in 2024 (13 January 2025)