America’s data center boom is facing a significant construction bottleneck, with more than half of the capacity expected to come online in 2027 not yet under construction, Inc. reports.
Of the roughly 37 GW that IIR Energy expects to become operational next year, about 20 GW had not even begun land clearing as of Aug. 4.
Since the median data center project takes about 18 months to go from land clearing to completion, SynMax expects actual 2027 completions to reach only the low 20s of gigawatts, well below forecasts in the high 30s elsewhere in the industry.
The biggest obstacle is access to electricity. Roughly 600 GW of proposed U.S. data center projects are still searching for power capacity, while only 183 GW have signed construction or electricity-supply agreements with utilities.
Grid constraints and shortages of critical equipment are making the problem worse, with generation step-up transformers facing average lead times of more than three years. Developers also face permitting challenges, local moratoriums and growing community opposition. A Gallup poll found that 71% of Americans would oppose an AI data center in their area.
Still, once projects break ground, they are generally more likely to reach completion because labor, equipment, financing and planning are more firmly secured. Despite these challenges, the AI infrastructure boom is not disappearing. Wood Mackenzie expects the U.S. data center electrical equipment market to grow from roughly $20 billion in 2025 to $65 billion by 2030.
Inc. has the full story. A subscription may be required.
