ESG and Infrastructure Constraints Put AI Progress At Risk As Data Center Delays Mount, Says GlobalData
Data center growth driven by demand for artificial intelligence (AI) is colliding with environmental, social, and governance (ESG) and infrastructure constraints. Annual data center power consumption is expected to rise from 590 terawatt-hours (TWh) in 2025 to 1,520TWh in 2030, accounting for 4.5% of global electricity consumption, up from 2.1% in 2025. However, rising water use in already water-stressed areas, growing public opposition, grid connection delays, and shortages of materials and skilled labor are delaying data center projects and could slow AI progress, according to GlobalData, a leading intelligence and productivity platform.
GlobalData’s latest Strategic Intelligence report, “The Constraints Reshaping Data Center Development,” reveals that most announced data center projects remain stuck in the planning stage. Projects that broke ground between Q3 2025 and Q3 2026 waited an average of just over two years from announcement to the start of construction, up from about 18 months for those that started between Q1 2020 and Q2 2025.
Martina Raveni, Senior Analyst, Strategic Intelligence team at GlobalData, comments: “Data centers are increasingly located in water-stressed areas, and their construction, along with the energy-intensive training and running of large language models (LLMs) are adding new sources of emissions. Together with concerns over noise, land use, and rising electricity bills, these impacts are hardening public opposition. According to Data Center Watch, in Q1 2026 alone, at least 75 US data center projects worth roughly $130 billion were blocked or delayed, the largest single-quarter total on record. Similar backlash is emerging in countries including the UK, Chile, South Korea, and Japan.”
Grid access has become a major bottleneck. According to the IEA's 2026 Electricity Outlook, more than 2,500GW of renewable, large-load, and storage projects are waiting in connection queues worldwide, and developers in Europe’s main data center hubs can face waits of seven to 10 years. Building new grid infrastructure can take five to 15 years, compared with the one to three years required to build a data center. Grid congestion is pushing operators toward on-site gas power, which risks increasing emissions even as grids decarbonize.
Raveni continues: “Data center buildout also depends on fragile supply chains. A single hyperscale facility can require up to 50,000 tons of copper, while AI data centers need 10 to 20 times more fiber than traditional builds, at a time when fiber manufacturers are already at capacity. On top of this, a shortage of electricians and other skilled trades is delaying projects.”
The industry is responding on several fronts, although progress remains uneven. Operators are adopting closed-loop cooling, expanding water stewardship commitments, diversifying their power supplies through renewables, battery storage, and fuel cells, and extending equipment lifespans through circular economy practices. Community engagement and workforce development are increasingly treated as core requirements for project delivery.
Raveni concludes: “These constraints are already translating into real delays for AI infrastructure. As capacity tightens, compute becomes more expensive and harder to access, pushing AI developers toward smaller models and more limited use cases. Unless grid access, equipment supplies, and construction timelines become more predictable, AI progress will be shaped as much by power and hardware logistics as by algorithmic innovation.”
Quotes provided by Martina Raveni, Senior Analyst, Strategic Intelligence team at GlobalData
Information is based on GlobalData’s Strategic Intelligence report: “The Constraints Reshaping Data Center Development,” which analyzes the ESG and infrastructure constraints facing data center development, the industry’s response, and the implications for AI progress.
This press release was written using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.
About GlobalData
GlobalData (LSE: DATA) operates an intelligence platform that empowers leaders to act decisively in a world of complexity and change. By uniting proprietary data, human expertise, and purpose-built AI into a single, connected platform, we help organizations see what’s coming, move faster, and lead with confidence. Our solutions are used by over 5,000 organizations across the world’s largest industries, delivering tailored intelligence that supports strategic planning, innovation, risk management, and sustainable growth.
