Americans are rallying against data centers. Surprisingly few are actually getting built
Americans Rally Against Data Centers as Fewer Get Built
Healfromzero.com – Americans are rallying against data centers across the country, but the construction boom isn’t happening as fast as headlines suggest. While political opposition and community resistance dominate news coverage, the real challenge lies in whether builders can actually deliver these facilities on time. Despite fierce backlash, the bottleneck isn’t public sentiment—it’s construction capacity.
A Gallup survey found that 71% of Americans oppose AI data centers in their neighborhoods, leading several states to propose or pass legislation banning their construction. Politicians have even made opposing these facilities campaign issues. Yet this wave of opposition coincides with a construction industry struggling to keep pace with unprecedented demand.
Construction Delays Define the Real Story
Historically, the industry has been remarkably reliable, with approximately 72% of scheduled capacity coming online as planned, according to Goldman Sachs. The AI era has disrupted that track record. Only about half of the AI computing capacity slated for activation through construction between now and 2028 is projected to meet its target date.
Traditional facilities require 18 to 24 months to complete, but completion windows are expanding as delays compound. This problem persists despite unprecedented financial commitment. JPMorgan estimates that $750 billion in AI infrastructure investments have flowed into the sector this year alone, yet projects continue struggling to break ground.
The statistics paint a concerning picture: JPMorgan found that 60% of capacity planned for 2027 completion hasn’t even started construction. An additional 7% of projects that have begun have subsequently experienced delays.
The Scale of Planned Expansion
The ambition behind the current wave is staggering. Stanford University’s AI Index Report documented 5,427 facilities across the United States at the end of last year. AI companies have announced plans for 3,969 new centers—nearly doubling the existing count. However, only 802 of those planned centers are currently under construction.
Industry analysts suggest skepticism may be warranted. Goldman Sachs noted that developers frequently submit multiple simultaneous applications across different regions before selecting the most viable location. This practice means many announced projects may never materialize.
Stijn Van Nieuwerburgh, a real estate professor at Columbia Business School, estimates that of the 565 gigawatts of computing power AI companies are currently planning—more than ten times today’s capacity—only 180 gigawatts will actually be built over the next decade. “Two-thirds of the pipeline is implausible,” he stated.
Materials, Power, and Labor Challenges
The overwhelming demand has created cascading shortages across multiple sectors. Building materials have become difficult to source as demand surges. Even when construction supplies are available, the chips housed within these massive facilities face their own constraints.
Taiwan’s TSMC fabricates virtually every leading AI chip, including Nvidia’s Blackwell and AMD’s MI300X, making the company “a single point of dependency in the global AI supply chain,” as the Stanford AI Index report noted.
Power grid capacity presents another critical challenge. Facilities already consume roughly 8% of United States electricity, a figure the American Edge Project—an AI advocacy group—predicts could reach 12% by 2028. Many AI companies have responded by building their own electricity-generation plants, but this strategy encounters obstacles. JPMorgan reported that wait times for generation step-up transformers have tripled.
GE Vernova, the largest natural gas turbine manufacturer, announced that bookings for its power generators have doubled to $200 billion over a five-year period. Meanwhile, inflation for transformers and power regulators has surged to become the second-highest among all 47 categories measured by the Bureau of Labor Statistics in its monthly Producer Price Index.
The Labor Gap Widens
Meeting construction deadlines requires unprecedented workforce expansion. The American Edge Project calculated that the United States would need to add 500,000 electricians, 300,000 welders, and 550,000 plumbers to complete proposed buildouts. Recent immigration policy changes have complicated recruitment efforts.
Even if only a fraction of these plans come to fruition, the investment would total approximately $10 trillion, representing a spending boom 50% larger than the nineteenth-century railroad expansion that transformed American infrastructure.
Frequently Asked Questions
Why are Americans opposing data centers?
A Gallup survey revealed that 71% of Americans oppose AI data centers in their neighborhoods, citing concerns about land use, energy consumption, and environmental impact. Several counties and states have proposed or enacted legislation banning their construction.
How many data centers are actually being built?
While AI companies announced plans for 3,969 new facilities, only 802 are currently under construction. JPMorgan found that 60% of capacity planned for 2027 completion hasn’t even started construction.
What are the main construction delays?
Key challenges include material shortages, power grid capacity constraints, and labor gaps. The United States would need to add 500,000 electricians, 300,000 welders, and 550,000 plumbers to complete proposed buildouts.
How much is being invested in data center construction?
JPMorgan estimates that $750 billion in AI infrastructure investments have flowed into the sector this year alone. Even if only a fraction of plans come to fruition, total investment would reach approximately $10 trillion.