Overview
- New hyperscale facilities routinely require 100–200 MW and are being designed up to multiple gigawatts, with EPRI projecting U.S. data‑center electricity demand growth of 3.7% to 15% annually through 2030.
- Bank of America reports average U.S. electricity and gas payments rose 3.6% in Q3 from a year earlier, while BLS data show electricity up 5.1% and gas service up 11.7% over the 12 months through September.
- Interconnection backlogs and hardware shortages remain binding constraints, with distribution transformers at roughly 30–50 weeks, large power transformers up to about 150 weeks, and switchgear often a year or more.
- Grid planners are implementing FERC Order 2023 reforms, including SPP, MISO, and CAISO efforts to consolidate studies and pilot AI-based tools, though process improvements do not shorten equipment lead times.
- Policymakers and industry are pursuing an all-of-the-above buildout and on-site options, and states are setting safeguards such as Indiana’s requirement that loads above 70 MW sign long-term contracts, post collateral, and pay minimum charges.