US Data Center Construction Fell Amid Permit and Power Delays

US data center construction declined in 2025 for the first time since 2020, marking a reversal despite record demand driven by AI workloads and quantum-ready infrastructure needs. Developers cited prolonged delays in securing permits and zoning approvals as primary bottlenecks, stalling projects critical for next-generation computing capacity. Power procurement emerged as a major hurdle, with utilities struggling to meet surging energy demands from hyperscale facilities, including those supporting quantum-classical hybrid systems. The slowdown contrasts with soaring AI and quantum computing investments, creating a supply-demand gap that could constrain technological advancements in high-performance sectors. Analysts warn the trend may persist without regulatory reforms or accelerated grid modernization, risking US leadership in emerging compute-intensive industries.