Up to 50% of planned data centers in the United States may face delays or cancellations as political opposition and construction constraints intensify, according to Kimmeridge Energy Management Co.
Ben Dell, managing partner and co-founder of Kimmeridge, cited growing bipartisan resistance to data center projects in states such as Pennsylvania, Texas, and Ohio—regions previously more receptive to such developments. The issue has gained traction in local politics, with legal disputes and community opposition increasing project risks ahead of the U.S. midterm elections.
Dell highlighted that natural gas demand tied to data centers could reach between 5 billion and 10 billion cubic feet per day, a development that would coincide with an expected 30 billion cubic feet per day increase in U.S. gas demand—primarily driven by liquefied natural gas exports. However, project delays could push AI-related consumption toward the lower end of that range. Natural gas prices have remained subdued for much of the past decade due to a supply glut from fracking operations.
Ideal data center proposals, Dell noted, would avoid negative impacts on water use, land use, emissions, or energy prices, aligning with broader sustainability concerns. The challenges underscore the growing friction between infrastructure expansion and environmental and community considerations in the U.S.
