Power Availability Now Drives AI Deployment Decisions, Flexential Finds

May 19, 2026
A new survey from Flexential shows that 89% of organizations now base their AI deployment locations on grid power availability, with electricity pricing and network performance emerging as major operational concerns.

Flexential announced in a press release that 89% of organizations now select AI deployment locations based on reliable grid power availability. The same report found that 55% view electricity pricing as the most important factor when choosing a region for AI workloads.

The survey indicated that 96% of respondents experienced network performance issues in the past year, showing that connectivity between facilities has become a growing challenge for AI operations. Nearly three quarters of participants expressed concern about electricity price volatility affecting their AI costs, while 42% identified power availability as the top sustainability-related constraint for long term AI infrastructure growth.

According to the findings, 40% of organizations see IT infrastructure as the main barrier to expanding AI initiatives. Respondents also cited U.S. tariffs and import restrictions as factors reshaping procurement strategies for AI hardware and data center equipment.

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