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Key developments: A growing share of U.S. data centers is missing construction timelines, with almost 40% delayed beyond three months, and only about 5 GW of the 16 GW slated for 2026 actually under construction. Grid connections can take years—up to seven in northern Virginia—while cumulative power requests have eclipsed 700 GW, far outpacing current consumption. To cope, developers are increasingly bypassing the grid, installing on‑site generation and backup generators. States are responding: California has enacted seven bills forcing data centers to fund local grid and water upgrades, and federal lawmakers are considering legislation to make data centers pay for new transmission.
Why it matters: Data centers now use 4.7 % of U.S. electricity (up from 4.4 % in 2023) and could climb to nearly 12 % by 2030, potentially reaching one‑fifth of consumption by 2035. This rapid growth threatens grid reliability, drives up costs for other ratepayers, and raises environmental concerns. Flexible demand‑response programs and on‑site power could mitigate the need for costly new generation, with studies projecting $40‑$150 billion in avoided investments.
What to watch next: Monitor the rollout of on‑site power solutions, including gas‑fired and renewable projects, and the outcome of pending federal and state policies that could reshape cost allocation for grid upgrades. Watch utility and regulator actions on demand‑response incentives, as well as the pace of new transmission construction aimed at serving large‑load customers. [[1, 2, 3]]