US Grid Constraints: Towards 40GW+ of Behind-the-Meter Datacenter by 2028?
A new analysis warns that US grid constraints could force up to 40GW of behind-the-meter datacenter capacity by 2028, driven by AI power demand and interconnection delays. This shift may bypass traditional utility oversight, raising reliability and cost concerns for residential ratepayers.
Background
- US electricity grid is strained by surging AI data center demand. "Behind-the-meter" (BTM) data centers connect directly to a power source (e.g., a gas plant) rather than pulling from the public grid, bypassing long interconnection queues — but critics say this risks reliability for others.
- Current BTM capacity: ~20 GW. This analysis projects 40+ GW by 2028 — equivalent to ~40 large nuclear reactors.
- Key bottlenecks: transformer shortages (2+ year wait times), limited transmission capacity, and regulatory friction (federal vs. state/utility control).
- Why it matters: data center power demand is forcing utilities to build new gas plants and delay coal retirements, potentially raising electricity costs for households and smaller businesses.