US Datacenter Capacity Delays Raise Concerns
Financial analyst Jefferies reports that only half of planned US datacenter capacity for 2026 is under construction, with 12 GW out of 24 GW currently being built. Delays are attributed to zoning, permitting, and energy supply issues, as well as duplicative counting of planned capacity. The situation is expected to worsen for 2027/2028, with 80% of planned capacity yet to start construction.
Key points
- US datacenter capacity for 2026 is expected to be 24 GW, but only 12 GW is currently under construction, according to Jefferies.
- Delays in datacenter construction are due to zoning and permitting challenges, interconnection setbacks, and access to energy supply.
- Duplicative counting of planned capacity by hyperscalers is also contributing to the issue.
- The US Energy Secretary has directed FERC to implement new rules to speed up grid connection for datacenters.
- The situation is expected to worsen for 2027/2028, with 80% of planned capacity yet to start construction.
US Datacenter Capacity Delays Raise Concerns
Financial analyst Jefferies has reported that only half of the planned datacenter capacity for the US in 2026 is currently under construction. This raises concerns about the ability of the country to meet its growing data storage needs.
According to Jefferies, the planned capacity for 2026 is 24 GW, but only 12 GW is currently being built. The delays are attributed to a range of issues, including zoning and permitting challenges, interconnection setbacks, and access to energy supply.
Another factor contributing to the issue is duplicative counting of planned capacity by hyperscalers, which is inflating the total planned capacity. The US Energy Secretary has directed the Federal Energy Regulatory Commission (FERC) to implement new rules to speed up grid connection for datacenters.
The situation is expected to worsen for 2027/2028, with 80% of planned capacity yet to start construction. This raises concerns about the ability of the US to meet its growing data storage needs and the potential impact on the economy.
Sources
The WireByte editorial team synthesises technology news from multiple primary sources, verifies the facts, and links every source. Articles are produced with AI assistance and reviewed under our editorial policy.