For the third consecutive year, power availability is the single biggest challenge facing the data center industry. For utility-scale renewable energy developers, that’s not a problem it’s an invitation.
The numbers coming out of CBRE’s 2026 North American Data Center Investor Intentions Survey are striking. More than half of institutional investors plan to increase their capital allocations to data centers this year, and 55% say they will grow buying activity by more than 10%. Primary markets saw total inventory expand by 36% in 2025 alone.
That pace of growth demands power at a scale the traditional grid simply was not built to deliver. And increasingly, developers and investors are asking a question that plays directly to our capabilities: should data centers generate their own electricity on site rather than rely on the traditional power grid?
Key Figures at a Glance
| 55% | of investors growing data center buying activity by 10% or more |
| 36% | growth in primary market data center inventory in 2025 |
| 250+MW | preferred project scale on a single parcel, with power delivery by 2028 |
| 3rd Yr | power availability has ranked as the top challenge facing the industry |
What the Survey Actually Tells Us
CBRE surveyed data center investors across North America and the findings reveal a market at an inflection point. Dallas-Fort Worth topped the list as the most attractive market for 78% of investors, with Northern Virginia close behind at 72%. The key draws: land availability, deregulated electricity markets, competitive power costs, and robust fiber infrastructure.
Notice what those top draws have in common. Three of the four are fundamentally energy questions. Deregulated markets. Competitive power costs. Power delivery by 2028. The data center investment thesis has become, at its core, an energy infrastructure thesis.
“Investors should consider whether data center operators should generate their own electricity on site rather than rely on the traditional power grid.”
CBRE, 2026 Data Center Investor Intentions Survey
Where the Opportunity Sits for Renewable Developers
Build-to-suit hyperscale was cited as the greatest investment opportunity by 41% of respondents over the next 12 to 24 months. These are projects of 250 MW or more, delivered on a single parcel, with power online by 2028. That timeline and scale aligns almost precisely with utility-scale solar paired with battery energy storage the core of what we build at The Solar Group.
Beyond new builds, value-add strategies climbed significantly in investor priority, up from 15% in 2025 to 28% in 2026. Older assets are being evaluated for retrofit. As server densities increase and power requirements per rack climb, the question of whether legacy power infrastructure can be upgraded becomes central. Behind-the-meter renewable generation is an increasingly compelling answer.
Active opportunity areas for renewable energy developers:
- Behind-the-meter solar + BESS for new hyperscale campuses
- Power purchase agreements with data center operators seeking long-term price certainty
- On-site hybrid generation solar, hydrogen, and thermal for grid-independent facilities
- Edge data center power infrastructure in secondary markets underserved by the grid
- Retrofit and repowering partnerships for legacy data center assets
Strong Demand, One Constraint
More than 80% of survey respondents cited strong occupier demand as the leading tailwind for the industry this year. Nearly 60% also pointed to lower debt costs as a potential positive. The macro environment for investment is favorable.
The single consistent headwind: power. For the third straight year. That constraint is not going away on its own. Utility interconnection queues are measured in years. Transmission buildout is slow. Regulatory approvals are complex.
The developers who can close that gap who can bring utility-scale clean power to a data center campus on the timeline investors require are the ones who will define this decade of infrastructure build-out.
Our Position
The Solar Group develops utility-scale renewable energy projects across solar, geothermal, hydro, hydrogen, and thermal technologies. We work at the scale the data center market needs 100 MW to multi-gigawatt and across the geographies where demand is concentrating. The convergence of AI-driven compute demand and the grid’s inability to keep pace is not a future trend. It is happening now, project by project, RFP by RFP.
If you are a data center developer, operator, or investor evaluating on-site or behind-the-meter power solutions, we want to talk.