US Data Center Projects Stall Amid Permits and Power Delays
The construction of new data centers across the United States has experienced a significant slowdown. This marks the first decline in activity since 2020, despite an increasing demand for artificial intelligence (AI) computing capacity.
Reasons Behind the Slowdown
A variety of challenges are contributing to this decline. Developers are encountering delays related to:
- Permitting processes
- Zoning issues
- Power procurement challenges
Current Capacity Statistics
As of the end of 2025, the capacity of data centers under construction has decreased. The total capacity dropped to:
| Year | Capacity (Gigawatts) |
|---|---|
| 2024 | 6.35 |
| 2025 | 5.99 |
This information was released by the real estate brokerage firm CBRE Group Inc. on a recent Wednesday.
The Future of Data Center Development
Despite the challenges, the demand for data centers remains high. Companies will need to navigate complex regulatory environments and power supply issues to meet this ongoing need. The focus will be on streamlining permitting processes and securing power more efficiently going forward.
