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US data centre backlash triggers project delays and temporary bans
In the first quarter of 2026, at least 75 data centre projects worth about US$130 billion were delayed or blocked by local opposition.
Data centre construction is facing a growing political and resource backlash, with knock-on effects for global commercial real estate investment momentum, according to the SCMP Economy.
The outlet cites JLL data showing global data centre occupancy at 97.0% at the end of last year, with 77.0% of capacity under construction already committed to tenants, and notes that hyperscalers including Amazon and Meta occupy more than half of total space.
Still, SCMP Economy highlights what it calls an inflection point for the sector as AI workload growth intensifies constraints around power availability, land access, sustainability requirements, and community acceptance.
SCMP Economy further reports that in the first quarter of 2026 at least 75 data centre projects worth around US$130 billion were delayed or blocked by local opposition, near the full-year total for schemes stymied throughout 2025. It also says New York moved to impose a temporary ban on large new data centres due to energy and water concerns, while lawmakers in more than a dozen other states are considering similar temporary bans.