• • • COVER STORY• • •
POWERING THE AI GOLD RUSH: NEW STRATEGIES BEYOND GRID CONNECTIONS
BY STEVEN CARLINI,
CHIEF ADVOCATE DATA CENTRES AND AI, SCHNEIDER ELECTRIC
he accelerated growth in AI data centre demand sparked a gold rush for grid connections among data centre operators. This ran into a major roadblock. There isn’t enough power to meet connection requests, leading to lengthy queues, some waitlists stretching up to 10 years or more.
T
Large load requests, typically 20 MW and above, require comprehensive grid impact studies to determine whether transmission and distribution systems can reliably support new demand. Legacy connection processes weren’t designed for increased requests, and completing grid impact designs required takes time.
This AI explosion changed data centre development. Operators used to build capacity then try to fill it; now they scramble to meet client demand, facing growing challenges in power accessibility. In the U.S. and Europe, some demand queues require as much capacity as the entire system’s peak demand. Places like the United Kingdom and Texas, queues exceed peak demand. The International Energy Agency predicts global electricity consumption for data centres could double between now to 2030.
Interconnect overreach Data centre operators were previously intensifying power restrictions. Looking to increase their odds of approval, some applied for grid interconnects from several utilities when they needed only one. Others sought grid capacity for speculative projects far from progression. This caused considerable noise as grid operators attempted to forecast demand and build the required capacity.
Utilities caught on, changing how they review and approve connection requests. They implemented a fee schedule requiring upfront deposit and subsequent fees as project milestones are reached. This reduced queues by up to half, enabling an accurate demand picture and better planning. Utilities have also changed how they perform impact analyses for data centre projects. In the U.S., the Federal Energy Regulatory Commission’s FERC Order 2023 allowed for transmission operators to evaluate multiple data centre proposals simultaneously. All projects submitted within a certain time window are reviewed as a single group to determine the cumulative grid impact.
Energy strategies that bypass grid connection delays
Although utilities have streamlined interconnection processes, securing grid power remains a growing obstacle to building AI data centres. Rather than waiting years for new transmission capacity, operators are diversifying powering facilities by investing in generation on-site or adjacent sites, energy storage, renewable energy and microgrids. Another option is an energy park, a megawatt- scale power generation site with multiple gas turbines powering data centres directly. Major hyperscalers are putting this into practice.
From Stargate’s 1.2-gigawatt mega data centre project in Abilene, TX, drawing most of its power from its own natural gas plant, to Meta ‘s Hyperion AI data centre in Richland Parish, Louisiana, planning to build 10 natural gas power plants to generate 7.5 gigawatts of electricity. In other cases, hyperscalers are making deals to reactivate dormant nuclear power plants, which is the case with Microsoft and Three Mile Island, and secure power from coal-fired plants scheduled for decommissioning but now operate longer than planned.
12 ELECTRICAL ENGINEERING • OCTOBER 2026
Beyond large-scale generation projects, operators are adopting various technologies to improve flexibility and reduce dependence on utility interconnections: • Battery Energy Storage Systems (BESS): On-site or nearby energy storage allows operators to overcome interconnect delays and tap into renewable energy sources for backup power.
• Wind and Solar Farms: In areas where renewable sources are abundant, data centres can harness them to run facilities at least some of the time. In addition, excess power that normally would be curtailed can be stored in BESS.
• Microgrids and Energy Parks: By generating their own power from renewables and other sources, microgrids allow data centres to run independently of the grid.
Other innovations such as hydrogen fuel cells and nuclear-powered small modular reactors (SMR) are being tested. Data centre operators are cooperating with a consortium, DCFlex, to explore collaboration with grid operators to minimise grid stress through flexible data centre loads. Membership in the group, organised by the Electrical Power Research Institute (EPRI), includes NVIDIA, Schneider Electric, utilities and other stakeholders.
Planning beyond the grid connection
OrganiSations that think beyond traditional grid connection with solutions including combining utility power with on-site generation, energy storage and intelligent energy management, will be strongest to deploy AI infrastructure faster. Learn how Schneider Electric helps data centre operators navigate grid constraints with integrated power, energy management and resilient infrastructure solutions.
www.se.com
electricalengineeringmagazine.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40
