Datacentre delays threaten global AI expansion

Large datacentre projects that underpin AI services are running into court challenges, local opposition, construction costs, supply chain limits and grid constraints. In Virginia, the 2,000 acre Prince William Digital Gateway is in doubt after a court ruling halted the project and a key backer withdrew, following objections tied to a nearby Civil War battlefield.

The Uptime Institute has identified 250 global datacentre projects exceeding 100MW in energy demand that were announced between 2021 and 2024, and says approximately half will be cancelled or delayed. The institute still expects an “unprecedented and rapid” rise in power demand over the next five years, with large projects including Project Range in Arizona and the Cyberjaya campus in Malaysia already cancelled.

Power access is emerging as the central constraint. Uptime says projects announced last year alone would consume 1.3% of projected global electricity use for 2025 if run at 25% of planned capacity, and about 80% of new demand comes from US projects. JLL is more optimistic, forecasting around 1,200 datacentres globally between now and 2030, while Uptime says the seven largest planned sites propose a combined 45GW of onsite power, mainly from gas.