AI data centers: Bottlenecks in construction and the consequences
Chip shortages and power issues are slowing down the global expansion of AI data centers - despite record investments in the US and Europe.
In 2025, significantly fewer AI data centers are expected to be built, according to Gartner. One of the main reasons cited is capacity constraints at Nvidia and other chip manufacturers.
The most important points at a glance
- Trump announces $500 billion for the “Stargate” AI project, while the EU promises €200 billion.
- Gartner predicts only $180.62 billion for AI data centers in 2025, instead of expected sums.
- Chip shortages at Nvidia and other manufacturers are slowing down the expansion of AI data centers in 2025.
- Power shortages and lack of locations are delaying the operation of new AI data centers worldwide.
- Mini nuclear reactors are being examined as an energy source, but raise safety and disposal debates.
Shortly after his re-election, US President Donald Trump proudly announced the $500 billion “Stargate” project for the construction of new AI data centers.
Despite large announcements, chip shortages, location problems, and power shortages are slowing down the expansion of AI data centers in 2025. (Image source: Adobe Stock / Victoriia)
Shortly thereafter, the European Union also promised investments of €200 billion. According to a Gartner study, however, expenditures for AI data centers are expected to rise only by a third to $180.62 billion in 2025, after investments had multiplied by five in 2024.
The market researchers attribute their cautious forecasts to various factors. As the main reason, Gartner analyst John-David Lovelock cited various bottlenecks in an interview with the news agency Reuters: “The factories of Nvidia and other chip manufacturers are already at almost 100 percent capacity,” he was quoted by the Handelsblatt. Difficulties are also caused by the search for new locations and the often insufficient power supply. You as an IT decision-maker should ask your IT team five critical questions.
Where to get the power?
Aside from that, one should not forget that a large part of the announced billion-dollar investments will initially flow into the infrastructure and less into the high-performance AI computers. Overall, the construction of new AI data centers is likely to become even more expensive and take longer.
Many data center operators and power plant builders, such as Siemens or the hyperscaler AWS, are already flirting with a return to nuclear power due to the lack of energy supply, using so-called mini-reactors. These are considered safer, which critics doubt again because with a larger number of small nuclear power plants, state control could be lost. Additionally, the problem of final storage and disposal remains. Therefore, US President Trump recently relaxed regulations for coal-fired power plants, while China, as the largest operator, has reduced the construction of these plants in favor of renewable energy sources in 2024.
Frequently Asked Questions
Why are AI investments slowing down in 2025?
According to Gartner, chip shortages, location issues, and power shortages are slowing down growth. Expenditures are only increasing by a third to 180.62 billion dollars.
What role does Nvidia play in expanding AI data centers?
Nvidia’s factories are nearly fully utilized. The chip shortage at Nvidia and other manufacturers is slowing down the construction of new data centers.
Why are companies considering the use of mini nuclear reactors?
Many data center operators and companies like AWS are examining mini nuclear reactors due to insufficient power supply. They are considered safer but are also controversial.
How is the US government responding to energy issues at AI data centers?
President Trump has eased regulations on coal power plants to improve energy supply for data centers.
How is China addressing energy supply for AI data centers?
In 2024, China reduced the construction of coal power plants in favor of renewable energy sources, although it remains the largest operator of such plants.
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Source of title image: Adobe Stock/ sdecoret
