Half of planned US data center builds have been delayed or canceled, growth limited by shortages of power infrastructure and parts from China — the AI build-out flips the breakers

Shortages of power infrastructure components and parts from China have led to delays and cancellations of about half of planned U.S. data center builds. The trade war between the U.S. and China has forced server makers out of China, impacting the availability of electrical equipment crucial for data center construction. Major tech companies like Alphabet, Amazon, Meta, and Microsoft are expected to invest heavily in expanding AI capacity, but constraints in power infrastructure components are hindering progress. The delays in obtaining key electrical components like transformers and switchgear are causing setbacks in deploying AI data centers, with lead times for high-power transformers stretching up to five years. Companies are turning to global markets to address shortages, with Canada, Mexico, and South Korea emerging as major suppliers for high-power transformers.