Fitch Flags Permitting Risks for U.S. AI Data Centers
Texas, Georgia and Ohio account for more than half of U.S. data center projects in development, Fitch said.
Key takeaways
- Texas, Georgia and Ohio represent more than half of U.S. data center projects in development.
- Fitch said tighter permits or moratoriums could delay projects and raise costs.
Fitch Ratings warned that U.S. AI data center projects face growing risks from possible state-level restrictions and delays in electricity supply. Texas, Georgia and Ohio account for more than half of data center projects under development in the country, the agency said.
Candidates who won midterm elections campaigned for tighter limits on data center development, Fitch said. Their proposals include possible temporary moratoriums and greater transparency around energy costs, water access and effects on local communities.
Fitch said it is unclear how much of those campaign pledges will become policy. New approval rules covering projects under construction or awaiting permits could cause delays and added costs, while tougher electricity and water permits or the removal of tax incentives could slow new investment.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
