Almost Half of US Data Centers That Were Supposed to Open This Year Slated to Be Canceled or Delayed

The tech industry is facing a significant challenge as nearly half of the US data centers planned to open this year are set to be canceled or delayed. This development, reported by Bloomberg, highlights a complex web of issues affecting the expansion of data infrastructure in the United States.

Data centers, which power various AI chatbots and other digital services, are facing shortages of helium, funding, and local support. However, the primary issue lies in the supply chain, particularly the availability of electrical components manufactured abroad. These components, such as batteries, electrical transformers, and circuit breakers, account for less than 10% of the cost to construct a data center. Nevertheless, they are crucial for the entire project, as noted by Andrew Likens, the energy and infrastructure lead at Crusoe's. "If one piece of your supply chain is delayed, then your whole project can't deliver," Likens emphasized.

The situation is particularly concerning for data centers scheduled to open in 2026. According to research by Sightline Climate, 12 gigawatts of power-consuming data centers were announced for this year. However, only a third of these are actually under construction, with the rest in a pre-production stage where they could, and likely will, be canceled. This trend extends beyond 2026, affecting data centers planned for 2027 and beyond.

For 2027, only about 6.3 gigawatts of computing infrastructure are under construction, compared to 21.5 gigawatts announced. The situation worsens in subsequent years, with the majority of data centers planned for launch between 2028 and 2032 yet to break ground. There are an additional 37 gigawatts of planned infrastructure that have not even received a firm completion date, with only 4.5 gigawatts beginning work.

The delays are exacerbated by a global imbalance in the supply of critical electrical components. As demand for these components outpaces supply in the US, data center firms are forced to source them from abroad. This reliance on international supply chains creates vulnerabilities and delays, making it challenging to meet the growing demand for data infrastructure.

The situation is described as "a pretty wild puzzle" by industry experts. The cancellations and delays not only impact the immediate plans for data centers but also raise questions about the long-term viability of the sector. As the demand for data services continues to grow, the industry must address these supply chain challenges to ensure the timely development of new data centers and maintain the reliability of existing ones.

In conclusion, the near-cancellation or delay of nearly half of the US data centers planned for 2026 underscores the complex issues facing the tech industry. The reliance on international supply chains for critical components, combined with the high demand for these components, has created significant bottlenecks. Addressing these challenges will be essential for the sustainable growth of data infrastructure in the United States and beyond.