S&P Global Ratings warned that construction suspensions and project
cancellations driven by local public opposition are increasing credit risk for
US data centers. Grid capacity limits, environmental disputes and zoning changes
have delayed projects; S&P tracked 146 delayed or cancelled data‑center projects
in the US, roughly three‑quarters linked to local opposition. The report
highlights pauses in New York, Texas, Pennsylvania, Illinois and Arizona and
notes 40 states have enacted local restrictions. Public concerns focus on energy
costs, water stress, air quality and noise. S&P said current rating impacts
remain limited but warned that sustained suspensions, slower approvals or policy
reversals that cause significant delays could force developers to grant rent
abatements or face early lease terminations, which would impair project
creditworthiness and raise downgrade risk.
