Nearly half of US data centers planned for 2026 are facing delays or cancellation

[Daniel Sims]

Cutting corners: American AI companies are racing to build as many data centers as they can, but limits in domestic manufacturing and energy supply are slowing progress. As a result, only about half of recent projects are meeting completion targets, and it remains unclear how many more will stay on schedule this year.

Analysts at Sightline Climate estimate that between 30% and 50% of AI data centers planned for deployment in the US this year will be delayed or canceled. The main constraints are difficulty sourcing key electrical equipment and securing enough power to operate new facilities.

Across 140 construction projects, data centers representing at least 16 gigawatts of capacity are slated to come online before the end of 2026. However, only around 5 GW are currently under construction, and typical build times range from 12 to 18 months. Another 16 GW remains in the "announced" stage with no clear signs of progress.

Sightline's outlook also reflects last year's trends, when manufacturers delayed 26% of announced capacity and pushed back commercial operations for another 10%. Looking ahead, projects scheduled for 2027 exceed 25 GW, but less than 10 GW is currently being built.

Insufficient power grids remain a central bottleneck. The energy demands of AI workloads have drawn increasing scrutiny, particularly in communities near proposed sites where residents have seen their energy bills increase.

A recent Pew Research survey found that Americans are wary of AI data centers due to environmental and energy concerns, while still expressing cautious optimism about potential job creation. Many of the planned facilities are expected to rely on a mix of local grid power and independent sources, including nuclear and renewable energy.

Hardware supply is another constraint. AI data centers have already shaken the foundations of the consumer technology market by diverting production capacity of memory, storage, and CPUs, raising prices for those components and for devices that depend on them, such as PCs and game consoles. However, Bloomberg reports that more fundamental electrical components, such as batteries and transformers, are also a crucial obstacle.

Despite efforts by the Trump administration to reshore manufacturing, largely through steep tariffs on China and other exporters, US production capacity still falls short of the AI sector's needs. For now, that leaves American AI companies continuing to rely on Chinese components to fill the gap.

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Nearly half of US data centers planned for 2026 are facing delays or cancellation

 

[yRaz]

I work in the industry and I've been saying this for a long time now. Less than 5% of data center capacity announced in 2025 has actually been started. There is so much hardware just being warehouses and even if the data center is built, it's 50/50 if they can even turn the thing on.

The company I work for has stopped accepting contracts for data centers as it's basically just vaporware at this point. The contract will be signed but the checks will never come or there are just inifite delays. All the AI bros think they found some money glitch and they really have no idea how absurd the situation is. Or maybe they do and are just in denial. AI bros are just the new Crypto Bros.

What people need to be asking now is where is the money going for all these data centers because the checks aren't coming to build them.

 

[hamza302]

It’s actually surprising but also kind of expected at the same time. The AI boom pushed companies to announce massive data center projects very quickly, but the real-world infrastructure just isn’t keeping up. From what I’ve been reading, a big issue is not just electricity itself, but also the lack of critical components like transformers and switchgear, which are essential to even start operations.
What stands out to me is that many projects are still only in the “announced” phase with no real construction progress. That makes it feel like some of these plans were more optimistic projections rather than fully secured developments.
Also, with AI data centers consuming massive amounts of power, it’s not just a tech problem—it’s becoming an energy and infrastructure problem. If grids can’t scale fast enough, delays like this might become normal over the next few years.
Curious to see whether companies will start investing more in their own power solutions (like nuclear or renewables) instead of relying on public grids.

 

[ScottSoapbox]

Not enough power grid power.
Back ordered alternative power generators.
Back ordered transformers to make either useful at nonpowerline voltages.

That stops your project regardless. And these are 2+ year back orders of all capacity. If you don’t have them already, you can’t buy them even at 20x the price.

The rest is delay frosting: RAM, storage, normal construction delays. 50% completion this year is optimistic.

 

[Anton Longshot]

I feel sad for these companies.
Nah just kidding I want them to go bankrupt, preferably yesterday.

So...can I have my RAM and other PC parts returned to the pré-AI boom affordable levels now?
How about selling the stuff that's in storage quickly=cheaply?
*rubs hands in anticipation

 

[FaTaL]

The only practical power solution to fuel AI is nuclear and you know that won't happen.

 

[Hecate91]

Good, hopefully the AI bubble is starting to pop.

 

[pnntmp]

Can this be any more unclear?
What "nearly half" means, and how exactly "delays or cancellation" is divided between delays and cancellation? Because, you know, these are totally different things. I don't see anything cancelled in the graphic, so maybe delays have a 99.8% share in "delays or cancellation" ?

What's the point in reporting a picture that has nothing to do with reality? That's a rhetorical question, of course.

 

[Theinsanegamer]

The only practical power solution to fuel AI is nuclear and you know that won't happen.

Same goes for widespread EV adoption but fans will demand you ignore the grid and we have plenty of electricity for everything already....

AI really has, once again, shown how poorly our infrastructure handles fluctuations in demand.

 

[Endymio]

I feel sad for these companies.
Nah just kidding I want them to go bankrupt, preferably yesterday.

So...can I have my RAM and other PC parts returned to the pré-AI boom affordable levels now?

Why not just convince your congressman that all those people using AI to develop cancer treatments and other life-saving drugs, better predict hurricanes and earthquakes, research stronger and lighter materials, and improve logistics for feeding the earth's billions should all just be legally banned, so you can keep playing your videogames cheaply? Better yet, skip the middleman, write a manifesto, and take action directly?

 

[James321]

So basically what everyone has been saying from the start !!!

These "Experts" surely aren't very good at their jobs. So panic buying DRAM and causing all these chaos could have been avoided. Gee Thanks "AI Experts", Grade 8 could have done the math and could have told you that.

 

[yRaz]

Why not just convince your congressman that all those people using AI to develop cancer treatments and other life-saving drugs, better predict hurricanes and earthquakes, research stronger and lighter materials, and improve logistics for feeding the earth's billions should all just be legally banned, so you can keep playing your videogames cheaply? Better yet, skip the middleman, write a manifesto, and take action directly?

All of it is being held behind a pay wall and enriching the few. The general population will never see the benefits that AI can bring to society.

 

[Hecate91]

All of it is being held behind a pay wall and enriching the few. The general population will never see the benefits that AI can bring to society.

The AI hype not having any real benefit to the average person reminds me of the movie Elysium, only the wealthiest few had access to the latest tech.

 

[Puiu]

Why not just convince your congressman that all those people using AI to develop cancer treatments and other life-saving drugs, better predict hurricanes and earthquakes, research stronger and lighter materials, and improve logistics for feeding the earth's billions should all just be legally banned, so you can keep playing your videogames cheaply? Better yet, skip the middleman, write a manifesto, and take action directly?

You can do that without all of this. There is plenty of hardware for that, this was always about chasing profits. You just don't want the AI magic bubble to burst. It's the only sector that is helping the US keep the economy going with massive investments (with zero profits and impossible to reach targets). There rest of the US sectors and economy? Trump managed to destroy them all, all at once, with zero regard for the future of the country

 

[Endymio]

You can do that without all of this.

Not in the real world -- which is why AI is daily finding new medical treatments and new materials that didn't exist, daily producing better medical diagnoses, helping farmers produce higher crop yields with less water and fertilizer use, helping logistic firms distribute more goods faster, with less losses and loss fuel used, etc, etc, etc.

There rest of the US sectors and economy? Trump managed to destroy them all, all at once, with zero regard for the future of the country

US jobs report yesterday came in triple the expected number of new jobs, with unemployment trending downward and inflation far below the average rate of the past administration. Oh, and the US trade deficit dropped 55% as well. And GDP growth is several times what socialist hell-holes like Romania (0.81% growth last full-year update) are seeing.

The general population will never see the benefits that AI can bring to society.

LOL, what? Even ignoring the benefits you're seeing directly in medicine and a thousand other fields, I have to ask -- do you not own even one dollar in 401Ks? You understand how those funds generate growth, right?

 

[yRaz]

LOL, what? Even ignoring the benefits you're seeing directly in medicine and a thousand other fields, I have to ask -- do you not own even one dollar in 401Ks? You understand how those funds generate growth, right?

I hate to tell you this, but green line doesn't always go up. Outside of magic 7 tech stocks, the US economy is actually shrinking. The circular investing has caused a credit crunch, access to capital is becoming extremely limited. The AI boom just delayed a market correction by a few years. And im not a ****, I have a ROTH, not a 401k. The thing is, these financial games they're using to fund data centers with private equity is likely to create a market crash. The AI giveth, the AI taketh away. Outside of ETFs, I have no exposure to tech stocks. I sold Nvidia last year, bought gold, sold gold at 5k and put my gains into commodities because they typically do very well during recessions. Everyone was making fun of me when I was saying exactly what this article is saying a year ago. I'm giving the economy till October. Banks have stopped lending and stacking up their cash reserves, people are pulling their money out of private equity, mortgage defaults are up, and car repos are the highest they have ever been. You talk about GDP growth but it's fake growth, the recent "correction" we saw is evidence of that.

Then I hear all these "genius" investors talk about how smart they are. Everyone is an investment genius in a bull market. I consider investing as a hobby, not a job and I have navigated 3 recessions in my time. The way you talk about your investments makes me think you're young and you've just started investing. I wish you luck in the bear market to come. I had to learn that the green line doesn't always go up the hard way and it sounds like you will, too.

 

[Endymio]

Outside of magic 7 tech stocks, the US economy is actually shrinking.

Who told you something so absurd? Jim Paulsen, originator of the clickbait "Walmart Recession Index"? Even he didn't claim the US economy was shrinking outside of the "Magnificent 7"'s growth -- and his estimate was just for one cherry-picked period a year ago. More balanced estimates put it closer to 30% of total GDP growth (Try Tombs and Allen, for one).

The circular investing has caused a credit crunch, access to capital is becoming extremely limited.

Nope again. Access to credit has expanded considerably in the last 18 months, as interest rates -- the primary factor controlling the market -- have begun to drop.

The thing is, these financial games they're using to fund data centers with private equity is likely to create a market crash.

How else would you fund them, except with private equity? With government funding?

I sold Nvidia last year, bought gold, sold gold at 5k and put my gains into commodities because they typically do very well during recessions.

You're 0 for 3. In a recession-driven bear market, most commodities suffer, except for safe-havens like gold ... but then you sold your gold. And nearly all commodities are structured in short/mid term futures, not long-term value storage, so I suspect your statement isn't accurate. Or did you take physical delivery to your house of large amounts of oil, wheat, and FCOJ? Did you read an article on how commodity futures are used as a recession hedge, and not quite understand what happens when those contracts expire?

Everyone was making fun of me when I was saying exactly what this article is saying a year ago.

No, you've simply misunderstood the article. The market for data centers is so hot that most of those planned simply can't be built, due to shortages in parts or the underlying infrastructure. That's the exact opposite of "AI MARKETZ BE CRASHIN!"

The way you talk about your investments makes me think you're young and you've just started investing.

I bought my first share of stock when Gerald Ford was apologizing for Nixon. You?

 

[yRaz]

Who told you something so absurd? Jim Paulsen, originator of the clickbait "Walmart Recession Index"? Even he didn't claim the US economy was shrinking outside of the "Magnificent 7"'s growth -- and his estimate was just for one cherry-picked period a year ago. More balanced estimates put it closer to 30% of total GDP growth (Try Tombs and Allen, for one).


Nope again. Access to credit has expanded considerably in the last 18 months, as interest rates -- the primary factor controlling the market -- have begun to drop.


How else would you fund them, except with private equity? With government funding?


You're 0 for 3. In a recession-driven bear market, most commodities suffer, except for safe-havens like gold ... but then you sold your gold. And nearly all commodities are structured in short/mid term futures, not long-term value storage, so I suspect your statement isn't accurate. Or did you take physical delivery to your house of large amounts of oil, wheat, and FCOJ? Did you read an article on how commodity futures are used as a recession hedge, and not quite understand what happens when those contracts expire?


No, you've simply misunderstood the article. The market for data centers is so hot that most of those planned simply can't be built, due to shortages in parts or the underlying infrastructure. That's the exact opposite of "AI MARKETZ BE CRASHIN!"


I bought my first share of stock when Gerald Ford was apologizing for Nixon. You?

You are disconnected from reality and I don't have the time to satisfy your ego by correcting everything wrong with this post.

But I will leave you with this. I work commercial construction. We built several data centers last year, not a single one is operating at full power. We stopped accepting contracts for data centers because the contracts are basically a lie that companies can show investors. We have stopped being a puppet for these executives to siphon money from investors. The checks stopped coming, We had to reallocate our workers to other jobs because they just aren't being built. Believe me if you want, or don't. But these fake data centers has cost us hundreds of millions. This article confirms what I've been saying for over a year and a year from now we'll be reading articles about how data centers were never built and the fraud committed by executives stealing PE and investor money.

 

[BuckarooBonzaii]

China must be happy watching the show. Will China become a Global leader in AI as they did in Manufacturing? Stay tuned.

 

[OortCloud]

Despite so few AI data centres being built, nobody is suffering from a shortage of computing power that I'm aware of for the AI usage they actually make.... funny that... almost as if we don't need any of those extra data centres because actual usage of AI is way lower than Jensen and the rest of the bros would have you believe...

 

[Endymio]

But I will leave you with this. I work commercial construction. We built several data centers last year, not a single one is operating at full power. We stopped accepting contracts for data centers because the contracts are basically a lie that companies can show investors.... these fake data centers has cost us hundreds of millions.

Yes, you've said all this before, and the glaring inconsistencies remain. I'm unsure how a data center operating 'not at full power' is considered "fake". And the last person a center operator would share usage with is some random employee in the company who built their building. But hey, try that "I'm under NDA" line again, and I won't note that, while NDAs occasionally exist for proposed projects, they do not (nor would they be binding) once complete. Furthermore, if these firms really were lying to investors about their construction efforts, then you'd have a legal and moral mandate to disclose that, NDA or not.

Returning to the real world, new data centers are coming online at the fastest pace in all history. This article doesn't dispute that ... it confirms it.

Despite so few AI data centres being built, nobody is suffering from a shortage of computing power that I'm aware of

It's a state called "blissful ignorance". Since the AI revolution began, the primary factor stalling both R&D and implementation has been computing resources. That was true until just a few months ago, when the lack of energy infrastructure eclipsed it:

What's the biggest bottleneck to building better AI? It's no longer the lack of computing resources — it's generating enough energy to feed it

For decades, AI was held back by slow, expensive computers. Today, the problem is simpler, but harder to fix: finding enough reliable electricity to keep data centers running as AI spreads into everyday life.

www.livescience.com

 

[yRaz]

Furthermore, if these firms really were lying to investors about their construction efforts, then you'd have a legal and moral mandate to disclose that, NDA or not.

Returning to the real world, new data centers are coming online at the fastest pace in all history. This article doesn't dispute that ... it confirms it.

it's like I've been telling everyone that will listen for the last year as we are caught up in litigation, but PLEASE tell me how I have not been telling everyone that massive fraud has been going on for the last year. I absolutely have been telling everyone about the fraud going on but the truth is inconvenient for you. Of the 200 gigawatts of datacenter build out that has been announce, less than 5gigawatts has even been started. not built, started. I don't know where the money is going, but the checks aren't coming. do whatever you will with that information, or just ignore it entirely

 

[Che Cazzo]

Why not just convince your congressman that all those people using AI to develop cancer treatments and other life-saving drugs, better predict hurricanes and earthquakes, research stronger and lighter materials, and improve logistics for feeding the earth's billions should all just be legally banned, so you can keep playing your videogames cheaply? Better yet, skip the middleman, write a manifesto, and take action directly?

So, my good man or woman, you think the billionaire tech bros had EXACTLY these things in mind when they started the craze to build unlimited amounts of AI centers?? They did it for the benefit of humanity and not to purely enrich themselves above all other considerations?? Good for you and God bless your sincere heart!!

By the way, how did we manage all these things before AI?? (except for the cure for cancer, ask Big Pharma how they feel about such a cure or if they'd allow it / just bury it!)

Indeed, my sweet sunshine kid, we are still pure cave dwellers, but don't you worry, AI is coming to elevate us and all of humanity to way above the simian level where we are right now, AND cure all our ills overnight or any time in AI time!!

And yes indeed, as you so wisely reported, the tech bros are the Mother Teresas of the AI age!! We should be building statues for them, right after we're done building a shipload for the TACO (just like you, a great admirer of the almighty AI!).

 

[Endymio]

it's like I've been telling everyone that will listen for the last year as we are caught up in litigation, but PLEASE tell me how I have not been telling everyone that massive fraud has been going on for the last year. I absolutely have been telling everyone about the fraud ...

Name it then. Name just one fraudulent center. NDAs aren't binding against fraud.

Of the 200 gigawatts of datacenter build out that has been announce, less than 5gigawatts has even been started. not built, started.

Wrong again. As per the article above, of the sixteen GW slated for this year, 5 GW is under construction. And nearly another 10GW is under construction slated for 2027+

Delaying a project is not fraud. Quite the opposite. The reason articles like this exist is because public corporations are publicly updating investors on the status of these projects.

So, my good man or woman, you think the billionaire tech bros had EXACTLY these things in mind when they started the craze to build unlimited amounts of AI centers??

Unlimited? No, just the number necessary to fill the burgeoning AI market.

40 years ago, people like you were claiming that companies like AT&T and Cisco were building unlimited amounts of fiber and routers, to handle an "Internet bubble" that would soon die out. You called notions of video phone calls, online shopping, and streaming movies nonsensical. I'm happy to say you were as wrong about that as you are about AI.

They did it for the benefit of humanity and not to purely enrich themselves above all other considerations??

The nice thing about the free market system is that people best enrich themselves by benefiting others. If you don't like that, I suggest you move to the a consumer paradise like Cuba or North Korea.

By the way, how did we manage all these things before AI??

We didn't. That's the nice thing about new innovations like electricity, Internet, and AI. While we survived without them, life is very, very much nicer with them.

 

[Che Cazzo]

Name it then. Name just one fraudulent center. NDAs aren't binding against fraud.


Wrong again. As per the article above, of the sixteen GW slated for this year, 5 GW is under construction. And nearly another 10GW is under construction slated for 2027+

Delaying a project is not fraud. Quite the opposite. The reason articles like this exist is because public corporations are publicly updating investors on the status of these projects.


Unlimited? No, just the number necessary to fill the burgeoning AI market.

40 years ago, people like you were claiming that companies like AT&T and Cisco were building unlimited amounts of fiber and routers, to handle an "Internet bubble" that would soon die out. You called notions of video phone calls, online shopping, and streaming movies nonsensical. I'm happy to say you were as wrong about that as you are about AI.


The nice thing about the free market system is that people best enrich themselves by benefiting others. If you don't like that, I suggest you move to the a consumer paradise like Cuba or North Korea.


We didn't. That's the nice thing about new innovations like electricity, Internet, and AI. While we survived without them, life is very, very much nicer with them.

You lost the rest your credibility for good this time! (assuming you had any to begin with)

You started comparing something proven and tangible like AT&T and Cisco products to AI and its spawn that are used primarily to produce fake videos, lousy code, biased political lingo and help college kids cheat and produce porn!

Is AI being used for something better or other than virtual Customer Service to deny the service, by healthcare companies to deny coverage, by the military to kill more people and by pimple faced kids to produce porn?? Sure, maybe 1 - 5% of usage (I am being generous, it's Easter Sunday after all), but spare us the Industrial Revolution Part Deux hyperbole that you are preaching.

With the current AI pirates at the helm, we will not be there for quite a while, maybe in decades, but for now are you are happily parroting the Tech Bros sales pitch and expect us to believe it.

Have a good day, ya hear?