Almost half of US AI data centres are being axed as the industry hits a breaking point.
Artificial intelligence has been one of the most hyped industries in the world for the past few years, with billions being poured into infrastructure, models and computing power.
But behind the scenes, the cracks are starting to show.
According to reporting by Bloomberg, approximately half of the data centres set to open in the US in 2026 will either face significant delays or be cancelled outright.
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Data centres are the backbone of the entire AI industry. Every chatbot interaction, image generation and AI-powered service depends on their computing power.
Analysts at market intelligence firm Sightline Climate found that while around 140 large-scale data centre projects (around 12 gigawatts of power) were planned to go live this year, only a third of those are under construction.
The remaining two-thirds are stuck in a pre-production phase, which analysts say makes them highly unlikely to open on schedule, if at all.
Meanwhile, for data centres planned to open in 2027, only 6.3 gigawatts of computing infrastructure are currently under construction, compared to the 21.5 gigawatts announced.
It doesn't seem to improve over the years either. The vast majority of data centres planned for launch between 2028 and 2032 haven't even broken ground yet, with a further 37 gigawatts of planned infrastructure, of which only 4.5 gigawatts have begun construction work.
The core of the problem comes down to a supply chain bottleneck that the industry has been slow to reckon with.
Electrical components, including batteries, transformers and circuit breakers, are essential to building any data centre. Although they account for less than 10 percent of the total construction cost, without them the entire project comes to a standstill, Andrew Likens, energy and infrastructure lead at Crusoe’s told Bloomberg.
“If one piece of your supply chain is delayed, then your whole project can’t deliver,” Likens said. “It is a pretty wild puzzle at the moment.”
As demand exceeds supply, US manufacturers have had to turn to suppliers from Canada, Mexico, South Korea and China. This, of course, adds months to the already stretched timelines as they not only take a long time to manufacture and assemble but also need to be shipped and transported.
Speaking to Bloomberg, Likens explained: “We’ve seen firsthand the value it can create if you are not hamstrung by electrical infrastructure lead times. They can make or break a project.”