Artificial intelligence is changing the way companies think about data centers. It’s also changing the way utilities, developers, and manufacturers think about power.

AI data centers require enormous amounts of electricity. The International Energy Agency projects global data center electricity consumption will more than double by 2030, with AI as a major driver of that growth. In the United States, data centers are expected to account for nearly half of electricity demand growth between now and 2030.

For utilities and developers, this creates a difficult question: where will the power come from?

For transformer manufacturers, the question is just as urgent: how can the industry keep up?

Transformer Demand Was Already Feeling the Pressure

The transformer supply chain was strained before the latest wave of AI data center projects. Grid modernization, renewable energy, industrial growth, electrification, increased weather resilience, and aging infrastructure were already adding demand for new and replacement transformers.

Now with AI data centers, they’re creating another layer of urgency.

Wood Mackenzie reported that the U.S. power transformer market faced an estimated 30% supply deficit in 2025, while distribution transformers faced an estimated 10% deficit. The same pressure has contributed to longer lead times, higher costs, and tighter availability across the transformer market.

This creates a difficult operating environment for manufacturers. Customers need their orders faster, and utilities still need grid upgrades, but transformer production cannot scale instantaneously. Large power transformers require specialized materials, skilled labor, quality manufacturing, and coordinated production planning. When any part of that chain falls behind, the entire project timeline can feel it.

When demand rises this quickly, the obvious answer is “build more.” However, for transformer manufacturers, the answer is more complicated.

How Transformer Manufacturers Can Prepare for AI-Driven Demand

There is no single solution to the transformer supply challenge, but manufacturers can strengthen their position by focusing on the parts of the process they can make more dependable.

1.     Strengthening Supply Chain Planning

The first step is better supply chain visibility.

Transformer manufacturing depends on specialized materials, components, and production steps. When demand rises quickly, manufacturers need to understand where delays are most likely to happen and where additional support may be needed.

That includes planning around:

• Grain-oriented electrical steel
• Copper
• Insulation materials
• Tank fabrication
• Bushings
• Cooling systems
• Transformer cores
• Transportation and logistics

Transformer manufacturers best positioned for AI-driven demand will be the ones that identify pressure points before they become production problems. That may mean qualifying additional suppliers, improving communication across the supply chain, building more flexible production plans, or working with partners who can support specialized manufacturing needs.

2. Expanding Production Capacity Without Sacrificing Quality

Transformer manufacturers are being asked to increase output, but speed cannot come at the expense of performance.

Transformers are long-life assets that support critical infrastructure. A rushed process, inconsistent component quality, or poor material handling can create serious long-term problems. That makes quality control just as important as throughput.

To prepare for rising transformer demand, manufacturers may need to focus on:

• Improving plant workflow
• Investing in equipment and automation
• Reducing manual bottlenecks
• Training and retaining skilled workers
• Increasing coordination between engineering, procurement, and production teams

The goal won’t be to simply move faster. Instead, the goal will be to create more dependable throughput.

3. Working With Specialized Partners for Critical Components

No transformer manufacturer can solve the rising demand alone. As the market grows, specialized partners can help support the production chain by handling critical components and upstream processes that require specific equipment, expertise, and consistency.

That support can include:

• Electrical steel processing
• Lamination cutting
• Transformer core manufacturing
• Large-format core capabilities
• Clean handling practices
• Dependable production processes

Preparing for the Next Phase of Power Demand

AI may be a technology story, but its growth depends on physical infrastructure.

Data centers need power. Power requires grid capacity. Grid capacity depends on transformers. Transformers depend on transformer cores that can support quality, scale, and reliability from the inside out.

Thorough preparation means looking closely at every part of that supply chain. AI data centers need more power, and transformer manufacturers need more than demand. They need the right transformer core manufacturing partner.

Corefficient helps provide that support through transformer core manufacturing built around consistency, coordination, and the requirements of large power projects.