AI Boom Meets Reality: Half of Planned U.S. Data Centers Delayed or Cancelled

The artificial intelligence boom in the United States is hitting real-world infrastructure constraints. According to an assessment by energy investment firm Kimmeridge Energy Management Co., as many as half of the data centers planned across the U.S. are now facing delays or potential cancellation due to political opposition and the complexities of physical construction.

Ben Dell, co-founder and executive partner at Kimmeridge, stated, "The old 'Silicon Valley model' is now colliding with real-world infrastructure limitations."

This development is directly impacting energy markets. While market expectations had anticipated rising natural gas demand driven by AI growth and new power plant construction, delays in data center projects could force a downward revision of these forecasts.

U.S. natural gas producers have been counting on AI to boost consumption and lift prices, which have remained depressed for nearly a decade due to oversupply from widespread hydraulic fracturing. However, investor skepticism over massive tech spending, coupled with growing public opposition to data centers, is creating headwinds for a bullish gas market.

Dell estimates that while the projected daily increase of 30 billion cubic feet in natural gas demand is primarily driven by liquefied natural gas (LNG) exports, data centers were expected to contribute 5 to 10 billion cubic feet. If construction plans are delayed, AI-related gas consumption may fall toward the lower end of that range.

Moreover, political resistance is rapidly spreading from the local level. Dell warns that data centers are becoming a key issue in the upcoming U.S. midterm elections, with community opposition and lawsuits significantly increasing the risk of project disruptions. Even in states previously welcoming to data centers—such as Pennsylvania, Texas, and Ohio—bipartisan opposition is now rising.

Regarding this tech-society clash, Dell argues that the ideal data center proposal should achieve "zero impact," meaning no net effect on local water use, land, carbon emissions, or electricity prices.