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Grid interconnection queue risk

Now multi-year delay in some regions between a data center's request for a grid connection and the utility actually energizing it.

Definition

Grid interconnection queue risk refers to the delay between a data center's request to connect to the electrical grid and the utility actually energizing that connection, a delay that has stretched to several years in the highest-demand regions as the sector's growing power needs, driven in part by training large artificial intelligence models, outpace grid operators' ability to reinforce lines and substations. This risk directly affects project timelines: a site fully completed from a construction standpoint can remain unusable for months or years for lack of sufficient power supply, turning what was once mainly a technical and financial risk into a scheduling risk dependent on a third party, the grid operator, over which the operator has no direct leverage. For insurance and project finance, this delay changes construction risk analysis: power availability becomes a condition as critical as the physical completion of the building, and some operators work around the delay by installing on-site power generation while awaiting final grid connection.

Example

Several US grid operators, including Dominion Energy in Virginia, have reported connection queues stretching beyond several years for new data centers, with some projects turning to on-site generators while awaiting their final grid connection.

Related terms
Also known as

grid connection queue, délai de raccordement électrique, interconnection queue