S&P Global Ratings Identifies 146 Delayed or Canceled U.S. Data Center Projects

S&P Global Ratings identified 146 U.S. data center projects delayed or canceled as AI applications expand, with local opposition, grid limits and zoning changes slowing development.

Community resistance and electricity constraints are slowing development. Local governments in 40 states have imposed moratoriums or slowed approvals. Local concerns include rising energy costs, water shortages, air pollution and noise.

S&P assesses the effect on credit ratings as limited so far. It warns that moratoriums, slower approvals or policy reversals could create credit risk if they significantly delay projects.

Developers may face rent credits if local opposition or tighter rules significantly delay a project. In severe cases, tenants could terminate contracts if local opposition or tighter rules significantly delay construction.

The exposure also reaches hyperscalers investing heavily in AI infrastructure and utilities whose plans for long-term electricity sales may be disrupted by local restrictions.