Warning Signal: The total capacity of data centers under construction in the U.S. has declined for the first time in five years!

The construction of artificial intelligence data centers in the United States has stalled due to practical factors. A recent report released by real estate consulting firm CBRE on Wednesday indicates that the capacity of data centers under construction in the U.S. has decreased from 6.35 gigawatts at the end of 2024 to 5.99 gigawatts at the end of 2025.

The delays in data center progress are caused by slow approval processes, zoning planning, and delays in power procurement. This is also the first decline in new data center capacity in the U.S. since 2020.

Gordon Dolven, CBRE’s Director of Data Center Research, stated that construction delays, improvements in long-distance network speeds, and rising corporate interest in having ample land and power are driving data center investments to shift outside traditional hubs. This could reshape the North American data center market landscape.

Data shows that the number of projects under construction in Northern Virginia, a traditional hub, has fallen by 29%. Hillsboro, Oregon, decreased by 15%, and Silicon Valley by 14%. Meanwhile, Chicago saw a surge of 169% in projects under construction, and Dallas-Fort Worth grew by 15%.

Conflicts Between Technology and Communities

In recent years, tensions over data centers in American society have become more acute. Under community pressure, several states have introduced restrictions. For example, New York State legislators proposed a three-year moratorium on data centers over 20 megawatts and required them to bear related costs, especially for electricity.

Georgia and Virginia have also enacted relevant laws, hindering new data center projects. Data shows that in the second quarter of 2025 alone, community opposition led to the cancellation of eight data center projects in the U.S., delayed nine projects, involving investments of up to $98 billion.

Meanwhile, the aging U.S. power grid is also under strain. Dominion Energy, a power provider in Northern Virginia, stated that connecting large data centers to the grid could take an additional 1 to 3 years, and in some cases, up to 7 years.

Another case involves two projects by Digital Realty and Stack Infrastructure in Silicon Valley, near NVIDIA’s headquarters. Due to grid issues, these sites are currently vacant. Together, these two campuses have nearly 100 megawatts of capacity, and reports predict they may remain idle for years.

Although major tech companies’ enthusiasm for investing in data centers has not waned, resistance from communities is escalating in both strength and scope. This could severely impact the completion and operation of data centers, turning massive investments by tech giants into spectacular but ultimately unproductive buildings.

Considering last week’s suspension of redemption by data center financier Blue Owl, a private credit fund, and the increasing skepticism about the AI bubble in the market, investors should be more vigilant about risks associated with AI investments.

(Source: Cailian Press)