On September 9, sources with knowledge of the situation reported that the AI cloud project 'Project Braid,' a joint venture between Google’s parent company, Alphabet, and Blackstone Group, has experienced setbacks in the construction of its data center. Blackstone Group has invested $5 billion in this initiative, which was initially slated to lease computing resources equipped with Google’s AI chips to customers by 2027.

According to the sources, Google had originally planned to engage Crusoe, an AI data center developer, to oversee the construction of the data center in Cheyenne, Wyoming, USA. However, Google subsequently canceled this agreement and opted to take charge of the project directly, necessitating the reapplication for relevant permits. Google expressed concerns over Crusoe’s capacity to deliver the project on schedule. Crusoe had previously garnered attention for its involvement in the 'Stargate' data center project in Texas, a collaborative effort between OpenAI and Oracle.

Moreover, another data center site has been impacted by a shortage of transformers. Presently, the construction of AI data centers is grappling with challenges such as inadequate power equipment supply and delays in the approval process. Despite these hurdles, the project leader of Project Braid affirmed that the project is still advancing steadily, with plans to offer 500 megawatts of computing capacity next year.