As AI infrastructure development enters deeper waters, "delays" are gradually replacing simple "power shortages" as the industry's primary concern. Multiple executives and investors recently noted that project delays will become the central theme of 2026, a divergence that will separate world-class operators from average participants.
The current concept of "delays" is broad and multifaceted, stemming from various complex causes. These range from utility companies failing to deliver promised power supplies and critical equipment arriving late, to construction slowdowns due to on-site labor shortages.
For builders aiming to construct large-scale AI infrastructure, the complexity of delivery speed and scale is becoming evident. Wait times for generators, transformers, and liquid cooling components are extending. Moreover, as NVIDIA's most advanced hardware requires liquid cooling—a technology still in its experimental phase—numerous challenges remain unresolved.
This industry-wide lag is triggering ripple effects in capital markets. Recent cases show that not all delays have equal impact; what truly concerns the market are those involving political resistance, failed financing, or binding contract cancellations. These factors not only directly affect stock prices of related companies but also force some investors to reassess project viability.
Meanwhile, industry leaders are attempting to address these bottlenecks at their source. NVIDIA CEO Jensen Huang recently hosted a private summit at the company's California headquarters to promote "behind-the-meter" power generation—where data centers build their own power facilities to bypass lengthy grid interconnection waits.
For the industry, the ability to swiftly resolve power supply and construction delays will determine survival in the AI race.
**Political Resistance and Financing Challenges** Some project delays stem not from technical issues but from local government opposition, particularly when data centers scale from hundreds of megawatts to gigawatts (GW).
For example, in Saline Township, Michigan, a project faced a vote last September against rezoning farmland for a large AI data center. Developer Related Digital sued the township, prompting local officials to reverse their stance weeks ago. The project, a collaboration between Related Digital and Oracle for OpenAI, has a planned capacity of 1.4 GW. Michigan energy regulators also approved expedited power requests for the site this week.
However, local opposition has already had tangible consequences. Before construction could begin, Oracle and Related Digital needed to secure over $10 billion in financing. According to sources, investment firm Blue Owl recently opted out, citing concerns over lease terms and lingering local resistance that could cause further delays.
While Oracle stated that Blue Owl's decision wouldn’t affect timelines and alternative financing might be available, the news still drove Oracle's stock down by 5%.
**Failed Non-Exclusive Agreements** Another common delay occurs when developers sign letters of intent or enter exclusive negotiations, only for clients to back out of formal leases.
Fermi, a data center developer co-founded by former Texas Governor Rick Perry, recently faced such a setback. Regulatory filings revealed that its West Texas AI server campus failed to secure a tenant lease by the deadline. Reports indicate Amazon Web Services (AWS) was the withdrawing party, causing Fermi's stock to plummet over 40%.
Such cases aren’t rare. Earlier this year, Microsoft decided against additional data center agreements with CoreWeave in Texas, while AWS and Microsoft also abandoned plans to lease Applied Digital’s North Dakota facilities. Since lenders typically require binding agreements with top clients before funding, letters of intent alone can’t secure billions in financing.
**Contract Breaches and Economic Viability** More catastrophic are delays affecting projects already funded and deep into construction. Sources reveal that some AI data center projects have seen clients exit binding agreements pre-completion due to recurring issues.
This directly threatens project survival. In extreme cases, developers have halved NVIDIA server rents as concessions for severe delays. Industry veterans note that data center contracts often favor tenants, allowing them to exit or pay reduced rates if facilities underdeliver. When clients secure steep discounts due to delays, economic viability collapses.
For investors, the key question is no longer whether delays will occur, but whether teams can solve problems and deliver.
**NVIDIA’s "Secret" Power Summit** To tackle infrastructure bottlenecks, NVIDIA is taking proactive steps. Last week, Huang convened ~100 executives for a closed-door meeting in Santa Clara, focusing on AI’s core constraint: power.
Attendees included influential firms like Schneider Electric, GE, Hitachi, and Siemens Energy, alongside cloud providers. Huang emphasized that AI has turned data centers into "factories"—inputting power, outputting intelligence. The message was clear: those who scale power fastest will capture the next AI wave.
The summit highlighted "behind-the-meter" power solutions, where companies generate on-site electricity instead of waiting years for grid interconnection. OpenAI’s Abilene, Texas facility already uses this model. Huang also urged the power industry to boost data center efficiency, maximizing AI tokens per watt.
**Other Infrastructure Developments** Recent moves in data center and power infrastructure include:
- **Google Acquires Intersect**: Alphabet announced a $4.75B deal for Intersect, which helps Google secure "powered land" near high-quality renewable energy sources. - **Regulatory Pushback**: Vermont Senator Bernie Sanders called for a moratorium on AI data center construction. - **New Project Partnership**: Texas Pacific Land Corp. signed a strategic deal with Bolt Data & Energy (co-founded by ex-Google CEO Eric Schmidt) to develop large-scale data center campuses.
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