Project Braid Faces Early Delays Amidst Power Shortages and Regulatory Hurdles

Alphabet's (GOOGL) and Blackstone's (BX) joint AI cloud venture, Project Braid, is facing early delays. The $5 billion-backed project aims to rent Google's processors to customers, challenging rivals like Nvidia (NVDA)-backed CoreWeave (CRWV). Originally, the startup planned to bring 500 megawatts of data center capacity online by 2027.

One setback came when Google dropped a plan for Crusoe to build a major site in Cheyenne, Wyoming. The company lost confidence in Crusoe's ability to deliver and took over the work itself. Local officials have informed residents that the site will be scaled down.

Other planned sites faced issues due to power shortages and regulatory hurdles. In Texas, Governor Greg Abbott paused new data center approvals while the state reviews how developers pay for power. Project Braid's leaders expect uneven progress but still see strong momentum.