Why Building AI Data Centres Isn’t Working Anymore

Video summary

ColdFusion reports nearly half of US data center projects delayed or canceled as $650 billion plans collide with power, water, and community opposition.

ColdFusion examines the AI data-center boom, where four tech companies were expected to spend $650 billion in 2026, yet only about a third of roughly 140 planned US projects are being built. Power equipment, labor, and Chinese transformer imports are scarce, while local communities face noise, pollution, heavy water use, and rising electricity bills; Oregon schools reportedly lost $275 million in tax revenue, and Georgia rates rose 24%. Public opposition is growing: 65% of Americans surveyed opposed nearby data centers, and Maine temporarily banned new construction. The investment case is also shaky, with speculative returns, costly financing, Microsoft deferring up to 2 gigawatts, and the stalled 17-gigawatt Fermi America project losing leaders and a confirmed tenant. The film considers subsea cooling and smaller local AI models, arguing that transparency and community trust must shape future construction.

Chapters

1. 0:00The data center gold rush: $650 billion planned, but only a third of US projects building
2. 2:13Economic and local impact: AI spending drove 92% of US GDP growth as tax breaks limited local returns
3. 6:23Sponsor: Revolut
4. 7:46Structural supply bottlenecks: power, Chinese transformers, and skilled workers delay AI centers
5. 10:10Community and environmental toll: Utah's 40,000-acre plan, PFAS concerns, and rising power bills
6. 14:37Rising backlash and dissent: DRAM prices surged as Maine paused new data-center construction
7. 17:38Financial risks and bubbles: Microsoft cut 2 gigawatts as A-rated data-center bonds paid up to 12%
8. 21:10Failed projects and reality: Fermi America's 17-gigawatt campus lost leaders, a tenant, and value
9. 23:28Future paths and conclusions: subsea cooling, local AI models, and building with community trust