Story perspectives

U.S. Data Center Construction Plummets Amid AI Backlash

2/26/2026

Summary

Story summary

In 2025, U.S. data center construction declined for the first time since 2020.
Construction fell to 5.99 gigawatts in 2025, down from 6.35 gigawatts in 2024, according to CBRE.
Vacancy rates reached a record low of 1.4%.
Local opposition to large artificial intelligence (AI) data centers is growing, prompting states to reconsider incentives amid power costs.
The International Energy Agency warns electricity demand will rise significantly, risking power supply shortfalls.

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Story summary

In 2025, U.S. data center construction declined for the first time since 2020.
Construction fell to 5.99 gigawatts in 2025, down from 6.35 gigawatts in 2024, according to CBRE.
Vacancy rates reached a record low of 1.4%.
Local opposition to large artificial intelligence (AI) data centers is growing, prompting states to reconsider incentives amid power costs.
The International Energy Agency warns electricity demand will rise significantly, risking power supply shortfalls.