In the first quarter of 2026, approximately 75 data center projects in the US, valued at over $130 billion, faced blocks or delays. A Gallup poll from March 2026 indicates that 70% of Americans oppose the construction of new data centers in their local communities.
Construction costs for US data centers average $1 billion per project, with development reaching $17.6 million per megawatt. Rising material costs have contributed to this, with copper wire prices up 17.9% and steel prices up 22.5% year-over-year by mid-2026.
Delays significantly impact profitability, as a one-year postponement for a 100 MW facility can result in a loss of $500 million to $550 million in lifecycle value. Consequently, companies like Microsoft, Google, Amazon, and Meta are shifting their focus to international markets.
India has become a primary alternative, with construction costs ranging from $6 million to $7 million per megawatt, compared to $10 million to $14 million in the US and Europe. Electricity costs in India can be as low as 6 to 7 US cents per kilowatt-hour.
Hyperscalers are also exploring the Nordic countries for their cool climates and Spain for its renewable energy infrastructure and streamlined permitting. In 2026, total investment in data centers and AI infrastructure is projected to reach $660 billion to $690 billion.
