Alphabet-Blackstone AI chip venture faces data-center setbacks

  • Alphabet and Blackstone’s Project Braid faced setbacks across multiple planned data-center locations.
  • Blackstone provided $5 billion, while the venture targets 500 megawatts by 2027.
  • Google assumed control of a Cheyenne project after ending Crusoe Energy’s involvement.

Alphabet and Blackstone’s Project Braid AI infrastructure venture is facing setbacks at multiple prospective data-center locations as it prepares to offer Google processors to enterprise customers from 2027. Blackstone provided $5 billion for the venture, which targets 500 megawatts of capacity and has identified 29 potential sites. Google ended Crusoe Energy’s planned construction in Cheyenne, Wyoming, took direct control and is resubmitting permit applications; local officials said the project would be reduced. Another site was abandoned because of inadequate transformer availability, while specialized equipment procurement can take nearly 12 months, according to McKinsey research. Texas Governor Greg Abbott’s temporary halt on new data-center permits, pending a review of electricity-infrastructure cost contributions, disrupted several planned locations. Project Braid CEO Benjamin Treynor Sloss said the venture retains diversified site options and remains committed to its 2027 target. The broader industry is also under pressure: completion rates have fallen to about 50% from roughly 90% three years ago, and JPMorgan analysts said more than 60% of computing capacity scheduled for 2027 had not yet begun construction. Stronger-than-expected demand is prompting the venture to expand its site search, while the structure allows Alphabet to shift some AI infrastructure spending and risk to Blackstone. Alphabet’s shares rose 0.02% after the disclosure.

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