Rising costs, financing difficulties, local opposition, and delays in connecting to the power grid are slowing the expansion of artificial intelligence data centers in the United States. Microsoft, Google, and Oracle have experienced delays or cancellations affecting at least 47 major projects this year. The grid interconnection process, which can take up to five years, is a major obstacle, while Texas recently paused new data center connections for an audit of ERCOT’s queue. These constraints have increased costs and delayed capacity, as illustrated by Oracle’s force majeure notice for its Project Jupiter in New Mexico. Texas authorities, including Governor Greg Abbott, and ERCOT could determine whether to impose a data center moratorium, potentially inspiring similar measures in other states.
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