Data Center Developers Face Power Shortages and Community Pushback

Data center developers planning to support AI expansion through 2030 are confronting a dual challenge: inadequate grid power and mounting community resistance, according to a mid-year survey released by Bloom Energy.

The report, based on responses from 156 decision-makers across hyperscalers, colocation providers, and data center developers, reveals that power access remains the primary constraint to growth. Sixty-one percent of developers now plan to bring their own power generation if grid capacity proves insufficient—a significant shift toward self-reliance that reflects the severity of infrastructure limitations.

But power availability is no longer the only barrier. Community scrutiny has intensified over the past six months, with developers citing concerns about higher electricity prices, increased water consumption, and strain on grid reliability as the factors most likely to influence project approvals. As of May 2026, at least 18 state bills and 86 local moratoriums targeting data center development have been proposed across the United States, according to the survey findings first reported by Bloom Energy.

Why it matters

The convergence of infrastructure constraints and political opposition creates a bottleneck for AI deployment at a critical moment. As inference workloads—the real-world application of AI models—now account for more than half of AI compute demand, the industry needs sustained capacity additions. Projects that cannot navigate both technical and community challenges risk delaying the broader AI ecosystem's growth trajectory.

Additional construction pressures

Beyond power and community issues, developers face rising construction costs that further complicate large-scale buildouts. The survey indicates these financial pressures are affecting the pace of project execution, even when sites secure power and regulatory approval.

Nearly one-third of onsite-powered data center sites are expected to incorporate carbon capture technology by 2030, reflecting efforts to address emissions concerns while expanding capacity. This represents a shift from conceptual planning to actual deployment timelines.

Hardware-infrastructure mismatch

The report also identifies a readiness gap between chip developers and data center operators. Chip manufacturers expect high-density architectures and rack-level direct current designs to be adopted in 2028, a full year before data center developers plan to implement them. This misalignment could create friction as AI hardware requirements evolve faster than facility capabilities.

"Access to power remains the biggest constraint to data center growth, but it is not the only issue," said Natalie Sunderland, Chief Marketing Officer at Bloom Energy. "Community concerns are increasingly shaping which projects move forward."

The survey was conducted in April 2026 through a double-blind process, with 79% of respondents based in the United States. The findings were supplemented with interviews and public announcements from industry leaders.

Details were first reported by Bloom Energy in its 2026 Data Center Power Report Mid-Year Pulse.