WASHINGTON, July 7 — A surge in copper theft is driving up costs and delaying timelines for the construction of AI data centers across the United States, according to a new analysis from the Construction Industry Institute. The CII estimates that theft-related losses and the security measures required to combat them are adding 3-5% to total project costs. With the average data center construction project valued at $100 million in 2023, that translates to an additional $3-5 million per site.
Delays are equally significant. The CII reports that theft incidents push back project completion by an average of 2-4 weeks.
Stolen wiring and equipment must be replaced, and electrical systems must undergo re-inspection before a facility can go live. For a typical 100-megawatt AI data center, the financial impact of those delays is steep. The Uptime Institute calculates that such a facility generates $1 million in daily revenue once operational.
A three-week delay results in $21 million in lost revenue. Insurance costs are climbing as well.
According to the Insurance Information Institute, premiums for data center construction have risen 15% since 2022. The total economic impact of copper theft on U.S. data center construction reached an estimated $500 million in 2023, based on data from the U.S. Chamber of Commerce. Major technology firms are responding with increased security spending.
Companies including Amazon and Google have begun investing in on-site security guards, surveillance drones, and tamper-proof wiring. These measures add an additional 1-2% to project budgets. The trend shows no signs of abating.
The CII and other industry sources project that AI demand will drive a 20% annual increase in data center construction through 2030, meaning the problem of copper theft is likely to grow in scale and cost. The combination of higher insurance premiums, security investments, and revenue losses from delays is forcing developers to reassess their financial models.
A 3-5% cost increase on a $100 million project is material, and the added 1-2% for security measures compounds the pressure. The $500 million total economic impact figure from the U.S. Chamber of Commerce captures direct losses from theft as well as indirect costs such as increased insurance, security, and project management overhead. Amazon and Google’s moves toward on-site guards and surveillance drones represent a significant escalation in security spending.
Tamper-proof wiring, which is more difficult to cut and remove, is also being deployed at some sites. But these measures add cost and complexity to projects already under pressure from labor shortages and supply chain constraints.
The 1-2% budget increase for security, while modest in percentage terms, adds millions to each project. With AI demand projected to drive a 20% annual increase in data center construction through 2030, the industry is bracing for a sustained challenge.
