AI Power Demand Is Outpacing Grid Buildout
Utilities are struggling to connect large data centers quickly enough to maintain reliability, panelists said.
Utilities are struggling to connect large data centers quickly enough to maintain reliability, panelists said.
WASHINGTON, May 13, 2026 – Artificial Intelligence and large-scale data centers are driving electricity demand faster than utilities can expand generation and transmission infrastructure, energy regulators said Tuesday.
Panelists speaking at a United States Energy Association event warned that gigawatt-scale data centers are increasingly requesting grid interconnections within one to three years, while transmission projects can take seven years or more to complete.
“The speed and the size of these loads” are creating major reliability challenges, said Fritz Herve, vice president of government affairs at the North American Electric Reliability Corporation.
The group finds an exponential growing need for spectrum to support emergent space operations.
Researchers said slow power plant approvals threaten reliability as AI-driven electricity demand rises.
The administration is expanding automated reviews and digital systems.
BEAD projects are expected to involve 3.9 million utility‑owned poles, researchers Alex Karras and Michael Santorelli of the Advanced Communications Law & Policy Institute say