Overview
- FERC approved major interconnection reforms in June 2026 that aim to speed multi‑year queues but cannot quicken long transmission permitting timelines that still limit where data centers can get firm power.
- More than 2,500 gigawatts of generation, storage and large‑load projects sit in global interconnection queues, creating a time‑to‑power race that now determines which sites can host AI campuses.
- Hyperscalers are responding by signing long‑term firm‑power deals, co‑locating dedicated generation and pursuing behind‑the‑meter options so they can build on commercial timelines instead of waiting for the grid.
- New analyses, including an Allianz Trade study, raise 2025 data‑center emissions and future water use far above prior estimates, increasing scrutiny of on‑site gas turbines and other backup generation.
- Local opposition, state moratoria and disputes over cost allocation are growing, and those political and regulatory fights will shape whether grid upgrades are public expenses or private, captive solutions.