AI Data Center Construction Confronts Delays, Labor Shortages, and Public Opposition

A surge in demand for artificial-intelligence infrastructure has prompted developers to announce thousands of new data-center projects, yet the rollout is stalling. A Gallup poll shows 71% of Americans oppose AI data centers, and about a dozen states have proposed moratoriums; New York and Texas have already enacted temporary bans. Despite $750 billion in AI-infrastructure investments this year, only roughly half of the AI-computing capacity slated for activation by 2028 is expected to be operational on schedule, according to Goldman Sachs.

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The United States ended last year with 5,427 data centers (Stanford AI Index). AI firms have announced plans for 3,969 additional U.S. sites, but only 802 are under construction (Aterio). Industry analysts note that developers often file multiple applications and later select the most viable, leaving two-thirds of the pipeline “implausible.” The projected $10 trillion investment dwarfs the 19th-century railroad boom, yet material shortages, chip scarcity at Taiwan’s TSMC, and power-grid strain are bottlenecks. The American Edge Project estimates data-center electricity use could rise from 8% to 12% of U.S. consumption by 2028, prompting many firms to build on-site generation that faces transformer-supply delays.

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• 60% of data-center capacity planned for 2027 has not begun construction; 7% of projects already underway are delayed (JPMorgan).

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• Building a typical AI campus costs about $8 billion (Stijn Van Nieuwerburgh).

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• Labor needs include 500,000 electricians, 300,000 welders, and 550,000 plumbers (American Edge Project).

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• June 24, 2026: an unfinished campus and substation were photographed in Red Oak, Texas.

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• July 8, 2026: a 49.5-megawatt, three-level data center was under construction in Vernon, California.

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Goldman Sachs emphasizes that permitting, not bans, is the primary hurdle to construction. Marsh Risk’s Joe Macejak notes that contractors are “tied up in existing projects,” limiting capacity to start new builds. Real-estate professor Stijn Van Nieuwerburgh warns that over-optimistic timelines lead to excess debt and potential busts. Minneapolis Federal Reserve President Neel Kashkari has linked the massive spending to broader inflation pressures.

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• “Some of our clients are developing 24/7/365, and contractors are moving around all day, but there’s nothing they can do if all the labor is tied up in existing projects,” — Joe Macejak, head of Marsh Risk’s US property digital infrastructure business

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• “It’s very hard to get the timing right with these big buildouts, and often what ends up happening is we get overexcited and accrue too much debt and then a bunch of these investments go bust,” — Van Nieuwerburgh, real estate professor

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