AI data center boom faces $170B community opposition, Texas pauses grid queue

September 27, 2026 at 10:00 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Community opposition has blocked, withdrawn, or stalled more than $170 billion in AI data center capacity in the U.S. since January 2024, according to energy advisory firm Relae. Texas has paused new data center interconnections pending an audit of its 474-GW queue. Goldman Sachs still expects U.S. data center power demand to more than double to 66 GW by 2027.

Key Facts

More than $170 billion in AI data center capacity has been blocked, withdrawn, or stalled by community opposition since January 2024, according to Relae.
Goldman Sachs expects U.S. data center power demand to more than double from 2025 levels to reach 66 GW in 2027.
Texas has paused new data center interconnections pending an audit of its 474-GW queue.
The Electric Power Research Institute projects data centers will represent 9% to 17% of U.S. electricity demand in 2030 and up to 20% by 2035.
Goldman Sachs estimates only about half of data center capacity scheduled for the next one to two years will come online on time amid delays and cancellations.

Community Opposition

Community opposition has emerged as a major barrier to data center development, alongside construction labor shortages, long lead times for critical electrical equipment, limited power availability, and uncertainty around consumer demand for AI tools. Relae, formerly Carbon Direct, reported in June that more than $170 billion in AI data center capacity has been blocked, withdrawn, or stalled by community opposition since January 2024. That figure represents a sizable portion of the roughly $581 billion Goldman Sachs expects hyperscalers to spend in the U.S. on AI infrastructure, including data center construction, this year. Public backlash is fueling state-led efforts to impose stricter rules on data center development, up to and including moratoriums on new facilities in some places.

Grid and Regulatory Response

Many utilities and regulators have adopted large-load tariffs requiring minimum contract durations, minimum billing demand, collateral, upfront payments for impact studies, exit fees, and specific ramp schedules to weed out speculative load. Some states have introduced incentives for developers that bring their own capacity, agree to flexible energy use, or commit to state clean energy or economic development goals. Texas has paused new data center interconnections pending an audit of its 474-GW queue, underscoring the urgency of determining how much capacity will come online and when.

Demand Projections

Goldman Sachs said in May it sees U.S. data center power demand more than doubling from 2025 levels to reach 66 GW in 2027. The investment bank also estimated that only about half of data center capacity scheduled for the next one to two years is expected to come online on time amid delays and cancellations. The Electric Power Research Institute said in February that data centers will represent 9% to 17% of U.S. electricity demand in 2030 and up to 20% by 2035. Questions persist around the scale, timing, and location of new data center load, with uncertainty growing amid public backlash and state-level regulatory actions.