Data center expansion faces local, power and cost hurdles
Data center growth in the United States faces mounting obstacles, including local opposition, permitting delays and electricity shortages, and many announced projects may never be built. McKinsey projects U.S. data center demand will rise from 25 GW to more than 80 GW between 2024 and 2030. Goldman Sachs says AI-related spending added almost one percentage point to real U.S. GDP growth in the first half of last year. A Cornell University study published in Nature Energy finds data centers paid 38 percent of a $8.25 billion infrastructure bill linked to their growth in 2025, with residents covering the rest.
Key facts
- Residents covered the remaining 62 percent, or $5.13 billion, of the infrastructure costs.
- Transmission investment in energy projects rose from $2 billion in 2020 to $34 billion in 2025.
- Residential users are allocated a median of 47 percent of costs in regulated tariffs.
- Rural communities bear cost increases 76 percent larger than urban communities.
- A Pew Research study from September found environmental concerns lead negative views of data center builds.
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Why it matters
Billions of dollars in AI infrastructure investment depend on whether these projects proceed.
What changed
First published from TechCrunch, Fortune and OilPrice.com