Transmission providers process new connections through sequenced studies—feasibility, system impact, and facilities—based on queue position and cluster timing. Under reforms from the Federal Energy Regulatory Commission, most regions shifted to cluster-based analysis to clear backlogs. While this improves transparency and cost sharing, it also ties each project’s timeline to the slowest-moving request in its cohort. In regions like PJM Interconnection, queue volume from data centers and electrification has pushed full interconnection approvals years beyond site readiness.

For capital-intensive users—especially AI data centers—schedule risk now sits upstream of construction. A finished building without energized service is stranded capital. Queue uncertainty affects lease commitments, financing terms, and offtake contracts, forcing developers to rethink power strategy early or absorb costly delays.

RTOs continue implementing Order 2023 timelines, penalties, and restudy rules. Utilities are revising tariffs to address large-load co-location and incremental service. Expect tighter screening of speculative requests and more emphasis on readiness milestones to protect queue integrity.

Developers will increasingly pursue dual-track solutions: advancing grid interconnection while deploying interim on-site generation or storage. Sites with existing substations, brownfield capacity, or utility partnerships will command a premium as queue congestion persists.

Interconnection sequencing—not construction—now governs delivery for power-hungry projects. Cluster studies add predictability but extend timelines and spread risk. Developers who plan power strategy early, secure interim solutions, and select grid-advantaged sites will outperform as queues remain congested.