Dell Reports: Many Server Clients Request Delivery Delays Due to Power Supply Challenges

On October 7 (local time), Dell Technologies announced an ambitious upgrade to its long-term financial outlook during a securities analyst conference, signaling growing confidence in its AI-driven future. The company raised its annual revenue growth target from the previous 3%–4% to 7%–9%, while boosting its Non-GAAP diluted EPS growth forecast from at least 8% to at least 15%.

Dell projects that its AI server shipments will reach USD 20 billion in fiscal 2026, though some clients have already requested delivery delays due to power supply constraints.

Riding the Wave of the AI Revolution

Dell emphasized that it is uniquely positioned to benefit from the unprecedented pace of technological transformation, particularly in artificial intelligence. With a comprehensive product portfolio spanning data center infrastructure to personal computing, Dell leverages its engineering, deployment, ecosystem, and financing capabilities to cement its leadership in AI infrastructure solutions.

“Our customers are eager to deploy AI and leverage the compute, storage, and networking power we provide to enable large-scale artificial intelligence,” said Michael Dell, founder and CEO. “We’ve successfully translated that demand into operational growth, strong cash flow, and substantial shareholder returns.”

A Key Player in the Global AI Supply Chain

As nations race to build AI infrastructure, Dell has emerged as one of NVIDIA’s largest clients, procuring vast quantities of GPUs to manufacture AI servers for major partners including xAI and CoreWeave.

The company reaffirmed its guidance for the third quarter and full fiscal year 2026 (ending November 1, 2025). Dell expects server and networking revenue to surge 69% year-over-year, reaching a record USD 12.94 billion. Its outlook for fiscal 2026 AI server shipments has been raised to USD 20 billion, nearly double last year’s figure.

Power Supply: The Hidden Bottleneck

Despite the booming demand, Dell’s CEO cautioned that AI data center expansion will eventually reach a ceiling, though there are no signs yet of oversupply in computing capacity. Echoing this sentiment, Microsoft CTO Kevin Scott recently remarked that “‘shortage’ doesn’t even begin to describe the current situation.”

However, a new challenge is emerging — power availability. Michael Dell revealed that several clients, including OpenAI, have expressed concerns about energy constraints, leading some to delay server deliveries. “To generate trillions of tokens, create intelligence, and drive the economy forward,” he stressed, “you need not only computing power — but also enough energy.”

According to the U.S. Energy Information Administration (EIA), the national grid is expected to add 63 GW of new capacity this year. Yet, the combined 10 GW power demand from just OpenAI and NVIDIA’s data center projects already accounts for nearly 16% of that new supply — underscoring how the AI boom is straining power infrastructure at an unprecedented pace.