Global data center buildout faces delays and cancellations
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
Context
Data center construction grew to meet rising AI demand. Developers now face power, cooling and supply-chain limits that delay projects. The backlog should clear after 2027 as new power comes online and cooling designs standardize.
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