How might these delays affect NVIDIA?

They could slow near-term demand for its GPUs, but long-term demand remains strong.

AI Data Center Buildout Faces 'Significant Delays' Through 2027

Q: What are the reasons for delays in AI data center construction?

Supply chain complexities, skilled labor shortages, and regulatory hurdles.

Applied Digital CEO Wes Cummins predicted significant delays in AI data center construction through 2026-2027, noting that historically only 10% of large-scale industrial projects are completed on time.

June 29, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

on time delivery rate

10%

In an interview on CNBC's Squawk on the Street, Applied Digital Chairman and CEO Wes Cummins warned that the AI data center buildout will face "pretty significant delays through 2026 and 2027."

Details

Cummins noted that historically, only about 10% of large-scale industrial construction projects are delivered on time, and he expects AI infrastructure projects to follow the same pattern. He cited supply chain complexities, skilled labor shortages, and regulatory hurdles as primary causes.

Context

The warnings come amid surging demand for AI computing power, putting pressure on companies like NVIDIA (NVDA) that supply the GPUs powering these data centers. Any delays in infrastructure could slow AI adoption rates.

What It Means for Investors

Delays could temper near-term revenue growth for data center operators and equipment suppliers, but may create opportunities for firms with efficient execution. Investors should monitor supply chain developments and regulatory approvals.

Frequently Asked Questions

Only about 10%, according to historical data on large industrial projects.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.