Half of Planned US Data Center Builds Delayed or Canceled as Power and Parts Shortages Bite

Approximately half of planned US data center construction projects have been delayed or canceled as the industry confronts critical shortages of power infrastructure components -- including transformers, switchgear, and cooling equipment -- as well as parts sourced from China that face growing trade uncertainty, Tom's Hardware reported. The finding comes as the largest cloud and technology companies have collectively committed roughly $650 billion in AI infrastructure investment for the current year. That capital commitment is now running into physical constraints that cannot be resolved through financial firepower alone. Lead times for large power transformers have stretched to two years or more at some manufacturers, and domestic production capacity for critical electrical components has not expanded fast enough to meet demand. The problem is compounded by the US-China trade dynamic. A significant share of electrical equipment used in data centers -- including certain transformer components, cable assemblies, and specialized hardware -- is sourced from Chinese manufacturers. Tariff escalation and potential export restrictions on both sides have created supply chain uncertainty that is causing developers to pause or restructure projects. Hyperscale campuses under development by Microsoft, Google, Amazon, and Meta are among those experiencing timeline slippage. Colocation operators building capacity for enterprise customers are also affected, with some projects being deferred until power grid interconnection can be secured. The report underscores a widening gap between the ambition of US AI infrastructure investment announcements and the physical reality of building data centers at unprecedented speed and scale.