Half of US Data Centers Face Delays Amid Political Headwinds

⚡ AI Executive Summary

Investment firm Kimmeridge estimates that up to 50% of planned US data centers risk delays or cancellation due to political opposition and infrastructure challenges. The firm, which has stakes in natural gas producers and liquefied natural gas export projects, notes that bipartisan local resistance is intensifying in traditionally friendly states like Pennsylvania, Texas and Ohio, complicating what was expected to be a major driver of energy demand growth. For power systems, this represents a significant wildcard in near-term load forecasting. Grid planners have incorporated AI-driven data center electricity demand into capacity and generation adequacy models; widespread project postponements would materially reduce projected natural gas consumption for power generation and leave reserve margins higher than anticipated. The paradox is acute: utilities and pipeline operators face planning uncertainty while positioned for a structural demand surge that may materialize more gradually than modeled, potentially affecting investment signals for new dispatchable generation and transmission infrastructure.