Nearly half of planned US data center projects are being delayed or canceled, as the AI infrastructure boom collides with critical shortages of power infrastructure and Chinese-sourced electrical components, Bloomberg reported.
Alphabet, Amazon, Meta and Microsoft are set to spend over US$650 billion(HK$5.09 trillion) on AI capacity in 2026 alone, but the build-out is hitting grid limits.
Transformers are crucial for powering data centers. The report pointed out that before 2020, delivery took 24 to 30 months, but now it can take up to five years, citing data from Sightline Climate. That’s a problem for AI data centers, since their deployment cycles are under 18 months.
The report also pointed out that even with trade tensions, the US still relies heavily on imports. Imports of high-power transformers from China jumped from fewer than 1,500 units in 2022 to more than 8,000 in 2025, according to Wood Mackenzie data. China also supplies over 40 percent of US battery imports.
While US-China trade tensions have reduced American server makers’ reliance on Chinese production, China remains the world’s top manufacturer of electrical equipment essential for data center power systems. Shortages of power delivery gear, including transformers, switchgear and batteries, are now slowing project timelines.
Yiru Zhou
