The AI data center boom has a ghost problem

The AI data center surge looks akin it's operating into grave trouble. Projects are being delayed, canceled, or abandoned. Electricity shortages are holding everything up.

But there's a twist: A lot of these data centers were likely never going to get built in the archetypal place.

Bernstein Research analyzed thousands of planned US data centers and concluded that lone concerning 35% of the announced capability is apt to rotate into reality.

The industry has a fantastic name for several of the additional dubious projects: "Bragawatts."

These are enormous data centers announced by companies that frequently have small cognition construction them. Some haven't secured electricity, building permits, or equal customers.

Then there are the "ghost projects." Developers present multiple requests for power connections, expecting at smallest one location plant out. In Texas, these requests have reached additional than five times the state's existing power supply.

No amazement the grid looks overwhelmed.

This doesn't average the AI surge is fake. Far from it.

My coworker Eugene Kim exclusively reported this week that equal Amazon, among the world's most informed data center builders, is struggling to get adequate power to power its costly AI equipment.

But there's a big difference between Amazon's extremely genuine problems and an inexperienced developer announcing a gigantic project that may never happen.

The AI data center surge is real, and so are the challenges of construction all these facilities. But the sheer figure of speculative projects may be making those challenges appearance bigger than they really are.

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