US Opposition Disrupts 120 AI Data Center Projects as $68 Billion Stalls in Q2
Updated
Updated · KDnuggets · Oct 6
US Opposition Disrupts 120 AI Data Center Projects as $68 Billion Stalls in Q2
2 articles · Updated · KDnuggets · Oct 6
Summary
About 120 US AI data center projects were disrupted in the first half of 2026, including at least 45 projects worth roughly $68 billion stalled in the second quarter as local resistance spread.
379 jurisdictions have adopted moratoriums or outright bans, driven by fears that AI-scale facilities are pushing up power costs, straining water systems and shifting infrastructure risks onto local residents.
PJM capacity prices jumped from $28.92 to $269.92 per megawatt-day for 2025/26, with the grid monitor attributing 63% of that increase—about $9.3 billion—to data center load, even as studies still debate effects on retail bills.
Cities and states are responding with pauses, taxes and tougher rules: Indianapolis barred new construction through 2027, Charlotte paused approvals for 150 days, and Virginia imposed a 1.1-cent-per-kilowatt-hour tax capped at $600 million a year.
The broader fight has shifted from whether data centers get built to who pays for grid, water and permitting upgrades if AI demand falls short or benefits arrive elsewhere.