Most AI data centers may never be built. Blame the 'bragawatts.'
Analysts estimate that almost two-thirds of announced data center capacity may never get built. Meet the industry's "bragawatts."
Newcomers to the data center industry often face skepticism due to their lack of experience, leading analysts to dub them "bragawatts." Despite bold announcements, most projects never materialize. Bernstein Research analyzed over 7,000 US data center projects, finding that only about 35% of the announced capacity is likely to be built, amounting to roughly 170 gigawatts out of almost 500 gigawatts.
Companies like Amazon, Google, Microsoft, and Meta have perfect scores for development credentials, while newcomers like Kevin O Leary's O Leary Digital scored only 0.35 out of 5, with only 3% of their announced projects expected to become reality. Critics argue that press releases are cheap but concrete is not, and the industry's penchant for ambitious announcements without concrete plans is a cause for concern.
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