The US can build the world's most sophisticated AI models, but it can't get a basic electrical transformer delivered in under two years. Rob L'Heureux lays out the problem in a detailed analysis: transformers, the physical kind that step voltage up and down across the electrical grid, are in critically short supply. Demand is surging from AI data centers and electric vehicles, but supply hasn't kept up. Prices have roughly quadrupled since the 2000s, and lead times stretch years. The bottleneck is structural, not technological.
Transformer Shortage Threatens AI Data Center Boom
The US faces a critical shortage of electrical transformers, threatening grid expansion for AI data centers and electric vehicles. Covers supply chain constraints with grain-oriented electrical steel, manufacturing challenges, and policy decisions that made things worse.