O'Leary Digital Disputes Data Center Credibility Report
The firm pushes back on analyst claims that only a fraction of its massive data center pipeline will actually be constructed.
Updated on Oct. 22, 2026 in Data Centers
Live Poll
Do you trust that large-scale AI data center developers can realistically meet their announced construction goals?
O'Leary Digital CEO Paul Palandjian has contested a new report from Bernstein Research that assigned the company a low credibility score regarding its data center expansion plans. The research firm projects that only 489 megawatts of the firm's 15-gigawatt pipeline will actually materialize.
Why it matters
This dispute highlights the skepticism surrounding massive data center announcements, as industry analysts estimate that only 35% of all announced U.S. capacity will ultimately be constructed.
Bernstein Research estimates that only 489 megawatts of O'Leary Digital's 15-gigawatt announced capacity will eventually be built. This calculation is set against the firm's broader industry analysis that suggests only 35% of all proposed U.S. data center capacity will break ground.
The players
O'Leary Digital
A data center developer focused on large-scale campus projects with on-site power infrastructure.
Paul Palandjian
The CEO of O'Leary Digital who is managing the response to analyst credibility rankings.
Bernstein Research
A financial research firm that analyzes capital-intensive projects and infrastructure development credibility.
The details
O'Leary Digital campuses are designed for on-site power generation via direct access to natural gas pipelines. The company has secured 11,000 acres in Utah through a 30-year agreement with the Military Installation Development Authority and 13,000 acres in Alberta. The developer reports it has completed master planning, ground studies, and laser-based land surveying—a precise mapping technique using light pulses to measure distance—at both locations.
Timeline
Late September: O'Leary Digital filed an engineered water application for its Utah site.
October 22, 2026: Bernstein Research published its credibility assessment report.
The Tech Race
Bernstein Research evaluates the credibility of O'Leary Digital by comparing its project scale against the 35% industry-wide conversion rate for U.S. data centers. This assessment tests whether the developer can overcome the gap between massive announced gigawatt pipelines and actual delivered infrastructure.
While the immediate dispute affects investors and stakeholders, the successful completion of these sites would impact regional energy grids in Utah and Alberta. Construction timelines remain subject to the firm's ability to bridge its 15-gigawatt plans with the current 489-megawatt materialization estimate.
The takeaway
Analysts remain skeptical of the gap between gigawatt-scale data center announcements and actual physical build-outs. Watch for updates on the Utah and Alberta site development milestones to see if O'Leary Digital beats the 35% industry construction baseline.
Further reading
For broader trends in infrastructure development, visit the Data Centers section.
Source note: This article includes information reported by Business Insider.
Live Poll
Do you trust that large-scale AI data center developers can realistically meet their announced construction goals?
