# AI data center delays worry institutions as builders may balk at a 12-month wait

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/ai/50422
Published: 2026-11-06T23:40:28.000Z
Updated: 2026-11-06T23:40:28.000Z
Section: AI

> Ron Biscardi says institutional investors fear data center delays could weaken US AI competitiveness, with developers unlikely to wait 12 months for approvals.

Delays in AI data center construction could weaken US competitiveness and push developers to seek alternative sites, according to Ron Biscardi, co-founder and CEO of iConnections.

The rapid pace of AI development leaves builders little room for prolonged permitting delays. Biscardi said developers awaiting approval could redirect investment to other locations as their options narrow.

In a November 6 interview with Anthony Pompliano, Biscardi said institutional investors were concerned about how slower data center construction could affect AI. He described the facilities as essential to the industry and warned that delays could give China and other competing countries an advantage.

Biscardi said AI had been driving the stock market and that many investors he speaks with viewed America's future as closely tied to the industry's success. In that context, he argued, slowing construction of the infrastructure supporting AI could undermine US competitiveness.

He described Texas as a logical location for data centers because of its extensive available land and its oil and gas industry. Operating the facilities requires substantial energy, he said. While he understood concerns about construction in densely populated areas, he questioned the rationale for slowing projects in wide-open parts of the country.

Projects that already have government approval should be allowed to proceed, Biscardi said. He expressed hope that the incoming Texas administration would make decisions based on the interests of the industry, the state and the country as data center construction becomes a political issue.

Developers without permits would likely begin looking elsewhere, he said, although he was uncertain which locations offered the best alternatives. That would depend partly on which states welcomed construction. “They're not going to sit around for 12 months,” he said, citing the speed at which AI is advancing.

Biscardi also discussed orbital data centers as a potential longer-term alternative. SpaceX still faced engineering challenges, he said, but could become a serious competitor to terrestrial facilities if it made the technology operational within about three years. Expansion would then depend on how quickly it could build and launch satellites.