Half of AI data center construction projects are expected to be postponed or canceled due to shortages of transformers and batteries.
While many plans are underway to build AI data centers to meet the growing demand for AI, it has been revealed that half of these plans are expected to be postponed or canceled.
US AI Data Center Expansion Relies on Chinese Electrical Equipment Imports - Bloomberg
Half of US planned 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 | Tom's Hardware
To meet the growing global demand for AI, Big Tech companies are pushing ahead with multiple AI data center construction projects. Alphabet, Amazon, Meta, and Microsoft are projected to invest $650 billion (approximately 104 trillion yen) by 2026.
However, according to the financial newspaper Bloomberg, about half of the plans are expected to be postponed or canceled, and less than a third of the data centers scheduled to be operational in the United States in 2026 are actually under construction.
One of the reasons cited is a shortage of chips needed for data centers.
Construction of AI data centers could disrupt chip supply, potentially causing smartphone and PC prices to rise by up to 20% by 2026 - GIGAZINE
A new issue that has been pointed out this time is a shortage of related equipment.
AI data centers require a large amount of power, necessitating the expansion of the power grid. However, the batteries, transformers, and switches needed for this grid expansion are also used in other fields such as electric vehicles and heat pumps, resulting in a demand that exceeds manufacturing capacity. This is partly due to the outsourcing of manufacturing to China and other countries over the past few decades.
As a result, high-power transformers are being gathered from Canada, Mexico, and South Korea, and imports from China have also surged from less than 1,500 units in 2022 to over 8,000 units.
While US President Donald Trump and Chinese President Xi Jinping are scheduled to hold a summit meeting in October 2025, and tensions have eased somewhat compared to before, if the change in relations causes disruptions to supply chains, the AI data center construction plan could be further delayed.
Incidentally, IBM CEO Arvind Krishna has warned that it is 'almost impossible to make a profit' from AI data centers, which are receiving massive investment.
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