Prism Power plans USD $40m push into booming US data

Prism Power Group has set out plans to expand into the United States through the purchase of a certified local business as it targets shortages in electrical equipment and specialist labour linked to the data centre building boom.

The Watford-based switchgear and critical power systems specialist said it is raising USD $40 million for an acquisition in the US and for expansion in the UK. Prism said it is looking to buy a US business that already holds UL Certification, which covers compliance, safety and quality assurance requirements.

Data centre developers in the US have reported rising pressure on power infrastructure and project schedules. The sector has faced longer lead times for key grid components and tighter availability of specialist installation and maintenance staff.

Market pressure

Large technology groups already operate a substantial footprint of data centres across the US. Amazon, Google and Microsoft operate more than 520 sites across America, with more than 400 additional facilities under construction or development, according to industry figures cited by Prism.

Industry analysts estimate more than 100 gigawatts of new data centre capacity could come online between 2024 and 2035. Prism compared that figure with peak electricity use in New York City last summer, which it said was around a tenth of that level.

The pace of build-outs has exposed constraints in power connections and in the supply chain for high-voltage and medium-voltage equipment. Prism cited data pointing to shortages in the US market of around 40% for high-voltage switchgear, 25% for circuit breakers and 20% for medium-voltage equipment.

Large power transformers have also moved to much longer delivery cycles. Prism said lead times now average around 120 weeks in the US, with the biggest units taking up to four years. It said lead times were under one year a few years ago.

Regional bottlenecks

Some of the sharpest pressures have appeared in established data centre hubs. In Northern Virginia, a rush of projects has contributed to multi-year delays for new power connections as utilities reinforce high-voltage infrastructure, Prism said.

In Santa Clara, California, Prism said two large data centres built for AI workloads are standing empty while they await electricity. It said local officials have described an ongoing programme of grid upgrades and staged power delivery as new substations come online.

Prism linked these delays to a wider gap in equipment supply and specialist services. It said contractors report staffing backlogs of 12 months for new projects. It also pointed to concerns about maintaining existing facilities, which rely on continuous operational cover for power distribution, cooling systems and back-up power.

Acquisition plan

Prism said it has delivered mechanical and electrical infrastructure for modular data centre projects in the UK and across Europe since 2005. The company said its work has included high-voltage substations, back-up generators and low-voltage switchboards used in data centre power distribution.

The company said it plans to enter the US through the acquisition of a business with UL Certification. It did not name a target or set out a timetable.

Adhum Carter Wolde-Lule said overseas suppliers now feature more prominently in US delivery plans.

"The scale and urgency is such that America's data centre expansion has become an international endeavour, and we're again able to punch well above our weight in providing the niche expertise that's missing and will augment strained local supply chains - on the ground, straight away," said Adhum Carter Wolde-Lule, Director, Prism Power Group.

Prism also pointed to investment announcements by manufacturers as part of the industry response to US equipment constraints. "Major power manufacturers in the United States are ramping up production, while global giants have announced new stateside factories for transformers and switchgear components, aiming to cut lead times and ease the backlog - but those investments will take years to bear fruit and that is time the U.S. data centre market simply doesn't have," said Wolde-Lule.

Skills gap

Developers have faced rising competition for electricians, installers and maintenance engineers. Prism said the talent pipeline has lagged the speed of new construction and that staffing pressure has prompted some developers to stagger timelines.

Keith Hall said Prism sees an opening for contractors with experience of modular power systems that can be built off-site. "For overseas engineering companies like us with uniquely skilled contractors and technicians, plus a proven track-record in modular power systems that can be built off-site, the time is now and represents an exceptional opening into the world's fastest-growing infrastructure market. Equally, for the U.S. sector, the willingness to look globally for critical power systems excellence will prove vital in keeping ambitious build-outs on schedule and preventing the data centre explosion from hitting a capacity wall," said Hall.