Short Answer

Yes. Electricity availability and grid capacity are the primary constraints determining where AI infrastructure can scale.

Key Data

Factor	Impact	Notes
Electricity Supply	Critical	Limits total compute capacity
Grid Transmission	Bottleneck	Often slower than demand growth
Power Density	Increasing	AI workloads require significantly higher energy

Notes

AI systems are fundamentally constrained by energy availability. Even when capital and demand exist, infrastructure deployment is often blocked by grid limitations.

Source: https://www.datacenterfrontier.com/energy/article/55354992/transmission-at-the-breaking-point-why-the-grid-is-becoming-the-defining-constraint-for-ai-data-centers