The number of delayed or blocked data center projects in Q1 2026 equals the entirety of 2025, signaling a significant escalation in infrastructure buildout challenges. These delays are turning into a bipartisan issue, with local moratoriums pushing for conditional buildouts requiring tech companies to invest in local grid modernization. Despite local pushes, a blanket federal ban on AI infrastructure is deemed unlikely due to geopolitical competition with China.
Physical AI infrastructure buildout is hitting severe bottlenecks, forcing tech companies to directly fund grid upgrades and navigate local opposition.