U.S. data center construction delayed by China's postponement, with widespread shortages of key components—Beijing has effectively put the screws on America!
A report from Bloomberg on April 1 has poured cold water on the fervent U.S. AI infrastructure boom. The article reveals that nearly half of the data centers planned for construction this year may be postponed or canceled due to critical shortages of electrical components. A significant portion of these "chokepoint" components are heavily reliant on imports from China.
Initially, tech giants in Silicon Valley had planned to invest over $650 billion to expand AI computing capacity. However, they’ve discovered that securing electricity—and the equipment needed to deliver it—is even harder than obtaining chips. Data centers are truly "electricity-hungry beasts." The power consumption of a large-scale AI data center rivals that of a mid-sized city. Feeding this beast requires an entire massive power system, including transformers, switchgear, and batteries.
Yet, domestic U.S. manufacturing capabilities for electrical equipment can no longer keep pace with demand. Decades of offshoring have led to severe domestic production shortfalls. Wood Mackenzie analysts bluntly stated that current domestic capacity is simply insufficient, forcing companies to turn to international markets. One crucial detail is delivery lead times.
In the past, ordering a high-power transformer required a wait of 24 to 30 months. Now, with surging demand, that period has stretched to a staggering five years. Meanwhile, AI companies typically require projects to be completed within 18 months. This five-year gap directly results in numerous projects being stalled.
From January to October 2025, the U.S. imported more than 8,000 high-power transformers from China—compared to fewer than 1,500 for the entire year of 2022. In battery imports, China’s share remains stubbornly above 40%. Data shows that despite efforts by the U.S. to source alternatives from Canada, Mexico, and elsewhere, Chinese imports continue to rise sharply.
This massive infrastructure gap is eroding America’s advantages in chips and software. A data center using slightly older chips but able to go online two years earlier may actually produce far more computing power than a project equipped with cutting-edge chips but stuck in limbo due to construction delays.
Editorial note: Dao Ge believes this dilemma will be difficult to resolve in the short term. Rebuilding domestic manufacturing is not something that can be achieved overnight, and it comes at a high cost. This AI-driven "power crisis" underscores one truth in today’s globalized world: cooperation and mutual benefit are the only viable path forward.
Original article: toutiao.com/article/1861685407818764/
Disclaimer: The views expressed in this article are those of the author alone.