Global AI data center boom hits delays
Add Axios as your preferred source to
see more of our stories on Google.
As many as half of the world's data center projects slated to come online this year could face delays, according to a report issued Tuesday.
Why it matters: It's a sign of mounting collisions in the AI race — from power constraints and grid equipment shortages to rising community opposition.
The big picture: As tech giants sprint to build AI infrastructure, the physical — and political — limits of the power system are starting to bite.
State of play: Up to 11 gigawatts of 2026 capacity "remains in the announced stage with no signs of construction," per the report by Sightline Climate, a data intelligence firm.
- With typical build times of 12 to 18 months, that capacity could still come online — but only with dramatic acceleration, the report states.
Yes, but: Development is still surging despite growing hurdles. Data center additions hit a record in 2025, and 2026 is on track to surpass it, Olivia Wang, a Sightline research analyst, told Axios.
By the numbers: Nearly six gigawatts came online last year, and five gigawatts are already under construction this year. (One gigawatt can power about 1 million U.S. homes.)
- "While power continues to be a constraint, developers that locked in power and equipment contracts early are rapidly bringing capacity online," the report says.
Driving the news: With midterm elections heating up, communities are growing restless over rising power prices — which many blame on data centers that increasingly require city-scale electricity.
Zoom in: Sightline has tracked more than 10 new moratorium proposals in the past month alone in U.S. states.
- This includes New York, Michigan, Virginia and Oklahoma, Wang says.
- "We expect this trend to continue and meaningfully increase the risk of projects being delayed, withdrawn, and ultimately canceled," Wang wrote.
- The firm is tracking nine canceled projects in its database, so for now, most are facing delays, not outright cancellations.
Flashback: More than one-quarter of the 110 data center projects that were slated to come online last year were delayed.
What we're watching: Whether high-profile cancellations rise along with the wave of moratorium efforts.
Sign up here for Axios' Future of Energy newsletter.
