Alphabet and Blackstone’s cloud venture, Project Braid, is facing delays securing major data center sites to host Google’s AI processors.

Backed with roughly $5 billion from Blackstone, the startup plans to rent Google AI processors to customers beginning in 2027.

A bottleneck in data center development is evident as some potential sites lack transformers and other critical electrical equipment.

Industry-wide buildout is hampered by limited infrastructure capacity, equipment shortages, and slower on-time delivery—about half of projects meet schedules now, versus 90% three years ago.

Credible projects that align with ratepayers’ interests and show solid power and water plans should proceed, but with revised timelines.

Google terminated its agreement with Crusoe Energy in Wyoming and is pursuing new permits, with plans to scale down the Cheyenne facility after delivery concerns.

One prospective site was ruled unsuitable due to missing transformer equipment, underscoring broader supply chain bottlenecks and extended procurement timelines.

Another site faced delays as electrical transformer availability and long lead times extend project timelines by about a year.

Opposition to data centers centers on electricity costs, grid capacity, water usage, and local impacts, complicating relocations across diverse communities.

Moratoriums on new data-center construction are widespread, with average suspensions lasting roughly a year, creating timing risks for projects.

Delays reflect a broader industry challenge: ensuring enough electricity, transformers, skilled labor, and favorable approvals to meet surging AI demand.

Cancellation and delay with billions of dollars in projects cut or deferred in 2025 and early 2026 highlight rising execution risk despite ample capital.