The AI data center boom has a ghost problem

Halloween ghosts on a Silicon Valley lawn. Alistair Barr/Business Insider

The AI data center boom looks like it's running into serious trouble. Projects are being delayed, canceled, or abandoned. Electricity shortages are holding everything up.

But there's a twist: A lot of these data centers were probably never going to get built in the first place.

Bernstein Research analyzed thousands of planned US data centers and concluded that only about 35% of the announced capacity is likely to become reality.

The industry has a wonderful name for some of the more dubious projects: " Bragawatts ."

These are enormous data centers announced by companies that often have little experience building them. Some haven't secured electricity, construction permits, or even customers.

Then there are the "ghost projects." Developers submit multiple requests for electricity connections, hoping at least one location works out.…