The efforts reached a fever pitch the day after Donald Trump's second inauguration in 2025, when a bevy of AI luminaries including OpenAI CEO Sam Altman and Softbank founder Masayoshi Son crowded into the Oval Office to announce a $500 billion private investment in data centers.

But as the public has grown jittery about the impacts of AI on society and the job market — and story after story has landed about the downsides of hosting data centers in local communities — the buildout has emerged as a major political flashpoint and a key issue in the looming midterms.

The data industry's headwinds aren't just political, either. As the Financial Times reports, serious cracks are forming at the financial and logistical level, especially as serious AI revenue remains elusive.

Numbers cited by the paper are eye-popping. Drawing on data from regulatory intelligence outfit RegLayer, the FT reports that 47 large data center projects have already fallen through this year. Analysts at the equity research firm Bernstein only believe that about 35 percent of planned facilities are feasible.

All those canceled projects are due to a lot of factors, including local communities mobilizing against them, but it's also macroeconomic. The buildout is taking place during a period of high interest rates and shaky bond markets, and people involved with the effort told the paper that the situation is "threatening their ambitions."

Some of the plans were shaky to begin with. The FT reports that top labs like Anthropic and OpenAI have pushed so hard for the developments, believing them to be key to their success, that they've swallowed outsized costs and deemphasized due diligence. Investors are taking notice: stock in CoreWeave, a cloud provider closely linked to the AI data center industry, has fallen by more than 27 percent over the past month.

The really big question, though, is what happens to all these data center projects if the bottom starts to fall out of the AI industry financially, a situation that many economists have warned is a possibility over the past few years. For now, things are still chugging along — albeit much more slowly than anticipated.

"People aren't just dropping their shorts for data centers anymore," one unnamed executive told the FT. "It's much harder today to finance a data center."