Applied Digital CEO Wes Cummins warned of significant AI infrastructure delays extending through 2026 and 2027. Speaking on CNBC’s 'Squawk on the Street', Cummins highlighted major execution hurdles in bringing new data centers online.
Primary obstacles include long lead times for essential power equipment and complex utility timelines. A strained supply chain for mechanical, electrical, and plumbing components further restricts the buildout.
These bottlenecks are creating a growing gap between massive AI demand and actual data center supply. Cummins previously noted there would be a lot of tears in 2026 when project schedules are not met.