- As many as one in two US data centers planned for 2026 could face delays or cancellations
- The global chip shortage continues to strain supply, while demand soars
- Other challenges include energy supply and local opposition
Between a third and a half of all US data centers planned for 2026 are likely to be delayed or totally cancelled, Bloomberg reports, amid ongoing supply chain challenges and campus location concerns.
With an estimated 12-16GW of planned capacity, only 5GW is currently under construction and many projects remain having been announced, but with no physical progress yet.
Maybe one of the most notable is OpenAI’s $500 billion Stargate Project, with progress reportedly having stalled at Texas and data center buildouts falling behind the original timeline.
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Why are data centers being cancelled or delayed?
One of the main challenges data center operators face, as well as consumers, is the global chip shortage. “AI data center build-outs are crowding consumer categories out of memory and storage supply, which have already seen roughly five-fold and three-fold cost increases respectively since Q1 2025,” Omdia Principal Analyst Ben Yeh wrote.
Data centers are also renowned for their intensive energy consumption (something investors say they want more transparency about), and many face challenges sourcing reliable electricity supplies for campuses that need to be up and running 24/7. With grids already under pressure from electric vehicle adoption and other electrification strategies across heating and industry, some hyperscale projects have even included plans to build their own power generators and fund connections to the grid.
All of this comes at a time when western countries are seeking to reduce their reliance on cheaper and more readily available Chinese tech, with alternative manufacturing in the US struggling to scale quickly enough.
And finally, all of this aside, even if data centers do have everything they need to begin construction, local opposition has risen in recent months over environmental, noise and energy concerns.
All of this shows that the AI boom is no longer just constrained by chips alone – just in the past couple of years, we’ve seen a shift from compute being the major hurdle to power infrastructure and local communities.
We can only watch to see how these difficulties pan out over the long term, but with space-bound data centers a long way off, somewhere between a “pipe dream” and early-stage testing, terrestrial data centers are our only bet for now.
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