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Why the global AI data center boom is stalling

Why the global AI data center boom is stalling

Summary

According to a report, up to half of the new global data center projects expected this year might be delayed. Issues causing these delays include power supply constraints, equipment shortages, and community opposition, especially as the demand for AI infrastructure grows rapidly.

Key Facts

  • A report by Sightline Climate indicates many data center projects for 2024 could face delays.
  • Delays are due to power shortages, equipment issues, and community opposition.
  • 11 gigawatts of 2026 capacity have been announced but not yet started construction.
  • Typical construction times for data centers are 12 to 18 months.
  • In 2025, data center additions reached record numbers, and 2026 is expected to go even higher.
  • Last year, nearly six gigawatts of new capacity started, with five more currently under construction.
  • Concerns over power prices are rising as data centers demand more electricity.
  • Over 10 proposals for construction bans have emerged in several U.S. states recently.

Source Information