📰 Why are miners collectively turning against the industry? Is AI to blame for the wave of data center project cancellations?
At least 17 data center projects in the U.S. were announced canceled in the third quarter, the highest single-quarter total since 2024. According to Odaily Programs data, about half of the 69 canceled projects were put on hold due to opposition from local residents. This trend continued to intensify in the second half of the year: by November 4, at least four projects had already been halted in October alone, bringing the total number of cancellations in the second half close to the full-year 2025 figure. This wave of "anti-tech" sentiment is a direct blow to demand for chips and computing power.
Why does this news matter?
Data center construction is a key part of the digital economy’s infrastructure. The wave of project cancellations is essentially the result of a sudden shift in supply and demand. On one hand, training and running inference with large AI models require enormous computing power, driving up prices on the demand side. On the other, a "not in my backyard" effect has emerged in many parts of the U.S.: residents are concerned about noise, heat, and carbon emissions, while local governments have tightened site approval processes. Together, these conflicting pressures have made investors realize that building data centers may not be as profitable as they thought.
Market impact
In the short term, a slowdown in data center construction will directly hurt demand for servers and chips. Tech hardware stocks such as NVDA, AVGO, MRVL, COIN, MSTR, RIOT, MARA, and SKHY will face pressure. In the long term, if demand for AI computing really does slow, the value of BTC and ETH as stores of value and smart contract platforms could also be affected. Historically, a major wave of data center project cancellations also occurred during the dot-com bust in 2001.
💡 Based on current data, demand for computing power is unlikely to disappear in the short term, but project rollouts are indeed slowing. This means short-term sentiment around BTC and ETH may be affected, but the long-term trend remains unchanged. One thing to watch is whether data center construction in China or Southeast Asia could benefit from new opportunities if AI projects start moving overseas.
This assessment would no longer apply if global demand for AI computing power were to contract sharply.
This article was not sponsored by any project team. The author does not hold any of the assets mentioned.
⚠️ This is not investment advice. Forecasts are for reference only.
$BTC $ETH
At least 17 data center projects in the U.S. were announced canceled in the third quarter, the highest single-quarter total since 2024. According to Odaily Programs data, about half of the 69 canceled projects were put on hold due to opposition from local residents. This trend continued to intensify in the second half of the year: by November 4, at least four projects had already been halted in October alone, bringing the total number of cancellations in the second half close to the full-year 2025 figure. This wave of "anti-tech" sentiment is a direct blow to demand for chips and computing power.
Why does this news matter?
Data center construction is a key part of the digital economy’s infrastructure. The wave of project cancellations is essentially the result of a sudden shift in supply and demand. On one hand, training and running inference with large AI models require enormous computing power, driving up prices on the demand side. On the other, a "not in my backyard" effect has emerged in many parts of the U.S.: residents are concerned about noise, heat, and carbon emissions, while local governments have tightened site approval processes. Together, these conflicting pressures have made investors realize that building data centers may not be as profitable as they thought.
Market impact
In the short term, a slowdown in data center construction will directly hurt demand for servers and chips. Tech hardware stocks such as NVDA, AVGO, MRVL, COIN, MSTR, RIOT, MARA, and SKHY will face pressure. In the long term, if demand for AI computing really does slow, the value of BTC and ETH as stores of value and smart contract platforms could also be affected. Historically, a major wave of data center project cancellations also occurred during the dot-com bust in 2001.
💡 Based on current data, demand for computing power is unlikely to disappear in the short term, but project rollouts are indeed slowing. This means short-term sentiment around BTC and ETH may be affected, but the long-term trend remains unchanged. One thing to watch is whether data center construction in China or Southeast Asia could benefit from new opportunities if AI projects start moving overseas.
This assessment would no longer apply if global demand for AI computing power were to contract sharply.
This article was not sponsored by any project team. The author does not hold any of the assets mentioned.
⚠️ This is not investment advice. Forecasts are for reference only.
$BTC $ETH
