Google, Blackstone cloud venture faces delays at data centre sites

Alphabet and Blackstone's cloud venture, Project Braid, has encountered setbacks with data center locations slated for Google's chips, highlighting the challenges faced by Big Tech in advancing AI ambitions. Launched with a $5 billion investment from Blackstone, the venture aims to lease Google AI processors to clients by 2027. However, the project has faced early difficulties, including the scrapping of a plan for Crusoe, an upstart data center developer, to build sites in Cheyenne, Wyoming, due to Alphabet's loss of confidence in Crusoe's capabilities.

Google has taken over the project and is reapplying for permits, leading to a scaled-down version. Another site was deemed unsuitable because it lacked the necessary transformers, which are in short supply due to almost a year-long wait times. Texas' opposition to data centers also disrupted plans, with Governor Greg Abbott freezing new projects while the state gathers more information on costs to developers and tech companies.

Project Braid's CEO, Benjamin Treynor Sloss, maintains that the venture is on track for its 2027 target of delivering 500 megawatts, stating that having a diverse set of options and that site development progresses at different rates are helping them navigate the delays. The venture's backers are expanding their search for new sites, currently identifying 29 potential locations.

Despite these challenges, Project Braid remains confident in meeting its 2027 goal, acknowledging a 50% chance of meeting delivery dates, down from 90% three years ago. This shift in expectations could impact Blackstone's goal of becoming the world's largest financier of digital infrastructure.