The challenges faced by Alphabet Inc. and Blackstone Inc.’s joint venture Project Braid at several planned data center sites show infrastructure hurdles in the AI sector. As a result, $5 billion Project Braid project for 500 megawatts of capacity in 2027 is facing permitting delays and supply chain challenges. The collaboration aims to offer Google’s AI processors to customers starting in 2027, in line with the wider trend of neocloud computing. Meanwhile, Project Braid executives are confident of delivery despite admitted setbacks.
Google’s first major setback for Project Braid was the cancellation of plans to build data centers in Cheyenne, Wyoming, at an upstart developer called Crusoe. In particular, Google lost faith in Crusoe’s ability to deliver, and began to take over the project itself, and re-start the permitting process. So, local officials have told residents that the Wyoming Project Braid site will be reduced from its original plans.
Despite advancements in data center projects, the firm also aims to ensure that it is managing its projects in an ecofriendly way. One such way is the Google and Energy Dome’s CO2 battery, a form of long-duration energy storage aims for a cleaner and more reliable power supply to its data centers. The proposed technology captures and releases carbon dioxide in a closed cycle to store renewable energy for up to 24 hours.
Project Braid Confronts Equipment Shortages and Regional Regulatory Freezes
A second Project Braid site was rejected because of the lack of electrical transformers at the site. In addition, transformer shortages are a problem for data center builders across the board, and McKinsey estimates that wait times are approaching a year. The shortage of switchgear and skilled labor adds to construction delays on Project Braid.
Texas also had its own challenges for Project Braid, as Governor Greg Abbott issued an executive order to halt new data center projects. In particular, Abbott’s order calls for the state to collect data on how developers and tech firms pay for electricity. As a result, other Project Braid expansion plans in the Texas market were thrown into disarray.
Site Expansion Pipeline on Project Braid Joint Venture
Project Braid executives admit that individual sites are moving at varying speeds, but the venture is still on track for targeted 500-megawatt delivery by 2027. In particular, Project Braid’s chief executive officer, Benjamin Treynor Sloss, said the company took into account the possibility of different site progressions when planning. In addition, Project Braid has identified 29 potential data center locations and is continuing to build its pipeline.
But executives have agreed that data center projects now have only a 50% chance of being delivered on time, compared with 90% three years ago. The company JPMorgan Chase reported that over 60% of 2027 data center capacity has not yet started construction, reflecting the general infrastructure challenges that Project Braid and its rivals face.
Project Overview
- Project Name: Project Braid (Alphabet/Blackstone Joint Venture)
- Total Capitalization: $5 Billion
- Partners: Alphabet Inc., Blackstone Inc.
- Target Capacity: 500 megawatts
- Status: Operational planning, facing permitting and supply delays
Scope
- Google TPU (tensor processing unit) leasing platform
- 29 identified potential data center locations
- Neocloud computing infrastructure
- AI processor rental to enterprise customers
- Planned launch: 2027
Project Highlights
- Google’s challenge to Nvidia AI chip dominance
- Blackstone’s largest digital infrastructure commitment
- TPU commercialization expanding beyond Google Cloud
- BXN1 division supporting AI infrastructure investments
- Diversified site portfolio across multiple regions
Key Developments
- $5 billion capitalization established 2026
- Cheyenne, Wyoming site scaled down and re-permitted
- Google took over Crusoe data center project
- Texas Governor Abbott data center project freeze
- 29 potential sites identified for expansion
Key Challenges
- Transformer and switchgear equipment shortages (12-month lead times)
- Skilled labor availability constraints
- Texas regulatory freeze on new data center approvals
- Crusoe inability to deliver Wyoming site on schedule
- 50% probability of meeting delivery dates (down from 90%)
Outlook
- Target 500-megawatt launch in 2027
- Actively scouting additional data center sites
- Competing with CoreWeave and other neoclouds
- Supply chain bottlenecks ongoing through 2027
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