Delays in permitting, power, and zoning cause first drop in data center construction since 2020
Despite incredible demand, the number of data centers under construction in North America fell for the first time since 2020, according to new research from CBRE.
Total data center capacity under construction dropped about 5.6% year on year from 6.35 megawatts in 2024 to 5.99 megawatts by the end of 2025.
What’s causing the delay? Slow permitting, constrained supply chains, and growing public engagement with how deals are approved at the local level. Labor constraints also were cited in the report; a tight supply of skilled workers will increase costs.
What’s causing the delay? Slow permitting, constrained supply chains, and growing public engagement with how deals are approved at the local level. Labor constraints also were cited in the report; a tight supply of skilled workers will increase costs.
