Americans are increasingly opposing the construction of data centers, with 71% expressing opposition in a recent Gallup poll. Several counties and states have proposed or passed laws to ban them. However, the construction of these centers is facing significant hurdles, including construction delays, materials shortages, power shortages, and labor shortages.
Challenges in Data Center Construction
According to Goldman Sachs, only about half of the AI computing capacity scheduled to activate between now and 2028 via data center construction is actually expected to come online by its target date. Data centers typically take 18 to 24 months to build, but completion times are getting stretched as delays are getting worse.
Materials shortages are a significant issue, with building materials becoming difficult to source due to surging demand. The chips that the massive buildings house are also in short supply, particularly those fabricated by Taiwan’s TSMC. Power shortages are another challenge, with AI’s massive strains on the electrical grid causing a significant supply and demand imbalance.
Labor shortages are also a concern, with the United States needing to add 500,000 electricians, 300,000 welders, and 550,000 plumbers to meet deadlines for proposed data center buildouts. Public opposition is also a factor, with about a dozen states proposing data center building moratoriums.
Investments and Construction
Despite these challenges, spending on data center construction jumped 7% in June to $68.3 billion, according to a Census Bureau report. The United States had 5,427 data centers at the end of last year, and AI companies have announced plans for 3,969 new US data centers. However, just 802 are currently under construction.
The planned American data center boom is expected to be massive, with investments totaling around $10 trillion over the next decade. However, experts believe that many of the planned data centers may never be built, with two-thirds of the pipeline considered implausible.
Original reporting: KTVZ (Central Oregon) — read the source article.