Permitting delays under the Trump administration threaten to stall 92 gigawatts of clean electricity generation, as AI data centers drive soaring demand.
The backlog has already led to the scrapping of 7 gigawatts of generating capacity on federal land by 2025, according to a new report from Wood Mackenzie. Further scrutiny risks canceling another 12 gigawatts on federal and 80 gigawatts on private property.
The permitting challenges affect over $121 billion in investment and coincide with an increase in electricity use across the board, driven by data centers expanding to meet AI needs. By 2035, their electricity consumption is expected to triple.
Meanwhile, grid operators are being pressured to expedite connections but struggle with bottlenecks of new generating capacity, exacerbating supply issues amid rising demand. Tech companies are increasingly building their own power plants to bypass the permitting process.
Renewables have been a key contributor, accounting for nearly 90% of the record 53 gigawatts of new generating capacity added in 2025. However, projects sited on private wetlands and wind farms are facing heightened scrutiny under airspace regulations.
