The rapid expansion of data centers in the United States is facing growing political resistance as Texas, New York, and Pennsylvania move to slow or pause new projects. The concerns center on electricity costs, the strain on existing infrastructure, and local community impacts. In Texas, which represents about 20% of the U.S. data center development pipeline, even a brief delay could translate into billions of dollars in costs for developers.
The pushback has increasingly crossed party lines as policymakers respond to complaints from residents and concerns about overloaded power grids. For developers, the shift adds a new layer of uncertainty at a time when they are working to secure power supply and bring new sites online. The developments raise questions about whether the country’s data center buildout is entering a slower phase and what that may mean for future project timelines.
The issue was discussed in an episode featuring Kamala Schelling and BloombergNEF senior associate for North American policy Derrick Flakoll. The conversation focused on his recent notes, “Texas’ Data Center Pause Could Cost Projects Billions” and “Pennsylvania’s Data Center Pushback Raises Pipeline Risk.” The discussion examined how state-level action could affect project pipelines, developer economics, and the pace of data center construction across key U.S. markets.
The episode date was September 3, 2026.
Source: BloombergNEF
