Data center energy demand driven by generative AI is outstripping existing regional grid capacity. Traditional hubs are near saturation, creating long connection queues with waits typically seven-to-ten years and sometimes 13-15. The International Energy Agency reports nearly 20% of planned data center projects risk delay due to grid bottlenecks. Developers are building behind-the-meter primary generation to achieve speed to market in months rather than years. Sustainability goals push toward renewables, but many operators choose natural gas because it is fast to deploy, transportable, and lower-emitting than other fossil fuels. Natural gas use raises emissions and local community concerns, illustrated by major operators ordering multiple gas generators and expanding turbine counts near populated areas.
"Traditional hubs are at or near saturation, which has created long connection queues with waits of typically seven-to-ten years and in some cases 13-15. The International Energy Agency (IEA) that globally, nearly 20% of planned data center projects risk delay due to grid bottlenecks, and as a result developers are building 'behind the meter' primary generation. This offers speed to market in months rather than years."
"Then there's xAI, which uses natural gas generators at its Colossus data center in Memphis, USA. The company went so far as to double the number of turbines in use, a move opponents say was done without the required permits. Since then, the local county health department has approved 15 . Now looking to build Colossus 2 in the same city, xAI recently purchased a former natural gas power plant close to the site."
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