Global data center buildout faces delays and cancellations

3 min read

Research from Bernstein finds the global data centre pipeline is slowing, with 35-40% of announced capacity at risk of delay or cancellation due to bottlenecks in grid connections, transformers and liquid-cooling infrastructure. The firm projects a wave of project delays in 2025-2026 and rising cancellations into 2027, as utility interconnection queues stretch 3-4 years in core US and European markets and lead times for HV transformers and switchgear remain 80-100 weeks. Construction costs per megawatt have risen about 20-25% since 2023. Long-term demand from AI keeps the outlook constructive once new power and cooling standards arrive post-2027.

35-40% of announced capacity is at risk of delay or cancellation