NIMBY pushback begins to bite US datacenter buildout

Steven

NIMBY pushback begins to bite US datacenter buildout

Summary

CBRE’s North America Data Center Trends H2 2025 report shows a notable slowdown in new datacentre capacity in primary US markets: pipeline capacity fell to 5,994.4 MW at the end of 2025, down from 6,350.1 MW at the end of 2024 — the first decline since 2020. This comes even as overall supply rose 36% year‑on‑year to 9,432 MW and demand for compute to support AI continues to surge.

The market is tightening: vacancy hit a record low of 1.4% and average monthly rents for 250–500 kW requirements climbed 6.5% to $195.94 per kW/month. CBRE points to permitting, zoning, local opposition (NIMBYism) and power procurement as key bottlenecks delaying or cancelling projects in many states.

Key Points

  • New capacity under construction in US primary markets fell in H2 2025 — first drop since 2020 (pipeline: 5,994.4 MW vs 6,350.1 MW at end-2024).
  • Overall supply grew 36% year‑on‑year to 9,432 MW, but vacancy reached a record low of 1.4%.
  • Average monthly rental rates for 250–500 kW rose 6.5% to $195.94 per kW/month; rents are forecast to outpace inflation for 2–5 years.
  • Permitting, zoning, local opposition and power hurdles (including on-site generation needs) are increasingly delaying or halting projects.
  • Community concerns centre on energy prices, water use, noise and pollution from generators — Loudoun County cited as an example.
  • At least 36 US states offer targeted incentives (tax breaks/abatements), which influence site selection but also raise transparency and cost‑benefit concerns.
  • Trend: more on-site power generation and a shift toward regional, distributed facilities for inference workloads, boosting secondary markets.

Why should I read this?

Short version: if you care about cloud costs, AI rollout timelines, colo availability or where to park capacity, this piece explains why supply is suddenly tighter even though demand is booming. Local opposition, red tape and power snags are the real blockers — not a lack of interest. Read it to know why rents and scarcity are likely sticking around.

Author style

Punchy: the stats are stark and the implications immediate. This isn’t just another market blip — developers, operators and customers will feel the squeeze. If you operate infrastructure or plan capacity for AI, the detail matters.

Context and Relevance

This report matters because it ties three big industry forces together: explosive AI compute demand, strained local infrastructure and rising civic pushback. The combination is reshaping site strategy — more secondary markets, more on‑site power and longer planning cycles. For CIOs, colo customers and investors, those dynamics affect pricing, availability and project risk models.

Policymakers and local communities should also note the incentive tensions: states are offering subsidies to attract datacentres, but transparency and return‑on‑investment concerns (highlighted by groups like Good Jobs First) mean incentives may not be a straightforward win for taxpayers.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2026/03/04/cbre_datacenter_figures_2025/