Google, Blackstone Venture Faces Delays at Data-Center Sites

Alphabet Inc. and Blackstone Inc.'s cloud computing joint venture, internally known as "Project Braid," is confronting significant delays across several data-center locations designed to host Google's custom artificial intelligence chips. The initiative was established with $5 billion in funding from Blackstone to rent Google AI processors to enterprise customers by 2027, serving as an off-balance-sheet vehicle to help manage Google's projected $205 billion in annual capital expenditures. However, the rollout has suffered from multiple operational and regulatory obstacles. Google canceled construction plans with developer Crusoe in Cheyenne, Wyoming, due to execution concerns, while critical equipment shortages such as transformer supply bottlenecks with year-long lead times and a state-level permitting freeze in Texas have stalled progress. Industry data shows that data-center project on-time delivery rates have dropped to roughly 50% compared to 90% three years ago. Despite the hurdles, Project Braid executives maintain they remain on track to deliver an initial 500 megawatts next year by evaluating 29 potential locations, though broader infrastructure constraints continue to test Big Tech's aggressive AI hardware expansion.