Data Center Energy Constraints and Moratoriums Are Mounting: Expect to See Stalled AI Projects
Network World, Tuesday, August 4th, 2026
Energy shortages and construction moratoriums threaten to slow AI deployment across the US.
New York's statewide moratorium on data center construction joins 127 other US jurisdictions with similar restrictions, driven primarily by concerns over electricity costs and grid capacity.
Data center power demand is surging, with AI workload electricity consumption up 50% in 2025 alone while traditional grid consumption rose just 3%.
Despite record construction starts totaling $58 billion year to date, transmission infrastructure upgrades lag well behind demand, pushing operators toward on-site generation using fuel cells or natural gas.
Researchers project data centers could increase electricity costs by 6% to 57% in various states by 2030.