Nearly 160 data center projects across the United States have faced pauses or cancellations since 2024, as communities push back against facilities’ demands for electricity and water. The holdups could slow artificial intelligence development, and voters are raising concerns about the industry ahead of next month’s midterm elections.
Local Resistance, National Reach
S&P Global Energy is tracking 157 projects that have been paused, severely delayed or canceled. Dan Thompson, an analyst with 451 Research at S&P Global Energy, said roughly two-thirds of the projects tracked by the firm face some kind of delay, citing community opposition and pending legislation. “This is considered a key risk for projects that are in flight,” Thompson said on a webinar last week. “It's across the country that we're seeing this. We're seeing pushback and challenges to data center development.”
Opposition has surfaced in conservative Texas, liberal New York and swing-state Pennsylvania. All three have enacted measures in recent months to curb the data center boom. The Senate’s permitting reform bill includes provisions requiring data centers to pay for grid upgrades, putting the allocation of infrastructure costs into the policy debate.
A recent Utah State University poll found that opposition grew as a hypothetical data center was placed closer to a respondent’s home. Some opponents object to artificial intelligence and the companies developing it, wherever facilities are built. Tony Lenoir, associate director at 451 Research, said whether data centers raise prices depends on power-contract structures and how much local grid upgrading is needed. “It's a revolution within a revolution, if you will, and that is one of the core tensions we are dealing with today,” he said.
The Power Demand Behind the Dispute
Delays haven’t stopped the projected rise. 451 Research projects that power demand from U.S. computing hubs will climb from 50 gigawatts last year to 154 gigawatts by 2030. That projection reflects projects in mid-to-late development. Stefanie Williams, 451 Research associate director, said delayed projects typically haven’t completed permitting and face local opposition to rezoning.
Developers often wait for permits before ordering equipment and signing power-supply agreements. They also face waits for equipment such as transformers and turbines. Williams said some developers are shifting projects to communities more amenable to data center construction.
Google initially planned a $1 billion data center in Linn County, Iowa. After the county adopted data center regulations, the company asked for its site to be annexed by a neighboring community with more lenient rules. Williams said a key question is whether political leaders follow through on pledges to limit data center construction after the midterms. “It could be a question of watching what happens in the coming year,” she said.
Energy Policy and Public Costs
The International Renewable Energy Agency said data centers are “particularly significant” to the outlook for power demand because they can “grow faster than power-system infrastructure.” Its report calls for faster renewable-based electrification and says efficiency, grid expansion and flexibility are central to a balanced, rapid and affordable transition.
The report estimates that about $10.3 trillion would be needed each year. It says the transition could lower electricity prices by as much as 15% by 2050. The agency describes governments’ central task as managing the transition “as a single system rather than a collection of separate policy agendas.”
Who pays for the grid, water and other infrastructure needed to support expansion remains at the heart of the dispute, as does whether local rules can shape where projects go. Projected computing-power demand still points upward, even as communities and lawmakers seek limits, cost protections or stricter conditions.