US AI data center projects face delays, rising costs amid grid issues

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Rising costs, financing complications, local opposition, and grid delays are reportedly hindering the AI data center construction boom in the United States. This development affects major players such as Microsoft , Google , and Oracle , who are experiencing delays or cancellations in at least 47 large projects this year. The grid interconnection process, which can take up to five years, is a significant hurdle, with Texas recently pausing new data center connections for an ERCOT queue audit. These issues are increasing project costs and delaying capacity, as seen in Oracle’s force-majeure notice for its New Mexico Project Jupiter following regulatory roadblocks. Key actors in Texas, including Governor Greg Abbott and Texas regulatory bodies, are pivotal in determining the outcome of a potential moratorium on data centers.
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