Photo credit: Erik Isakson
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Now that data centers have become a topic of news coverage and mainstream political debates, developers face more barriers than ever. New research from Bloom Energy finds that community scrutiny — primarily over electricity prices, water consumption, and grid reliability — is a growing threat to the AI infrastructure buildout. Without addressing these issues, the data center boom could grind to a halt, threatening American competitiveness.
The 2026 Data Center Power Report: Mid-Year Update surveyed 156 hyperscalers, colocation providers, neoclouds, data center developers, and chip developers on factors stalling large-scale projects. While power availability remains the top challenge, 28% said community opposition has worsened over the past six months.
In the face of this opposition, developers are increasingly turning to on-site power, which can reduce strain on local grids and address community concerns over water use, noise and air quality. Industry leaders told Bloom that they expect one-third of all U.S. data centers to run entirely on on-site power by 2030 — a massive shift that is already underway in 2026.
