Big crisis in the world of AI, brakes on billion dollar projects of Google-Microsoft in America – ..

News India Live, Digital Desk: American tech companies, which are dreaming of leaving the whole world behind in the race of Artificial Intelligence (AI), have suffered a major setback in their own home. On one hand, companies like Google and Microsoft are calling AI the future, while on the other hand, a ‘ban’ like situation has arisen in many states of America on the billion-dollar data center projects of these companies. According to the latest reports, construction of more than half of the data centers planned for 2026 is either being delayed or canceled altogether. This ‘U-turn’ has created a stir all over the world whether the development of AI is now in danger?

Heavy electricity consumption and increasing pressure on the grid

The biggest reason for this crisis is ‘electricity’. The data centers used to train and run AI models require many times more power than usual. US states like Maine have introduced a bill to ban the construction of new large data centers until November 2027. Experts say that an average AI data center consumes enough electricity to power more than 15,000 homes. This is increasing the pressure on the local electricity grid and poses a threat of increasing electricity prices for the general public.

Lack of equipment: Dependence on China becomes a problem

Not only the law, but also the shortage of materials is coming in the way of these projects. There is a severe shortage of key electrical components required for data centers such as transformers, switchgear and high-capacity batteries. Surprisingly, America is still largely dependent on China for these equipment. Due to supply chain disruptions and situations like trade wars, delivery of these goods is now taking up to 5 years instead of 2 years. Without power infrastructure, Google and Microsoft’s investments worth billions are also proving useless.

Trump Administration’s ‘Ratepayer Protection Pledge’

Meanwhile, US President Donald Trump has implemented ‘Ratepayer Protection Pledge’ for AI companies. Under this, companies like Google, Amazon, Meta and Microsoft have had to promise that they will bear the entire cost of the electricity infrastructure required for their data centres. Its purpose is to save the general public (ratepayers) from rising electricity bills. Now these companies will not only have to build data centers, but will also have to install new power plants and grid lines themselves, due to which both the cost and time of the projects have increased.

Will America lag behind in the AI ​​race?

These obstacles in the construction of data centers have sparked a new debate. While China and other countries are rapidly building AI infrastructure, local opposition, environmental concerns and power shortages in the US have created fears of an ‘AI bubble’ bursting. If power and equipment issues are not resolved soon, the development of advanced AI tools like Google’s ‘Gemini’ and Microsoft’s ‘Co-Pilot’ may slow down, which could harm America’s technological edge globally.