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S&P warns data centers face downgrade risk as local opposition delays projects

S&P Global Ratings said data center projects face potential credit rating downgrades as public opposition triggers construction moratoriums and cancellations. Analysts including Chris Mooney said delays from grid capacity limits, environmental concerns and zoning changes “could increase downward pressure” on project credit quality. The analysis focused on moratoriums in New York, Texas, Pennsylvania, Illinois and Arizona, tracking 146 delayed or cancelled US projects, about three-quarters tied to local resistance.

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AI take

The credit-rating lens is the real shift here: local permitting friction is no longer just a construction-timeline issue but a balance-sheet one, and S&P tying most delayed projects to grassroots resistance reframes NIMBY politics as a financing risk. That matters for developers carrying project debt and for the lenders and utilities exposed to stalled builds, not just the hyperscalers. Whether rating agencies treat these delays as temporary or structural is the open question, and it will shape how the next wave of projects is sited and financed.

Generated by AI for reference only.

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