Science & Tech · Big Tech & Internet · 1 hr ago
US utilities demand proof before connecting data centers to the grid
US utilities are asking data center developers to prove their projects are real before committing to supply them with electricity.
Developers have requested 1,066 gigawatts of grid connections, but Wood Mackenzie expects utilities to commit to serving only about 28% of that demand.
Some requests are duplicated across utilities, while other projects may lack a confirmed site or customer.
Exelon’s high-probability data center load fell from 18 gigawatts to about 11 gigawatts after it required developers to accept financial obligations.
Utilities want to avoid building costly power lines and substations for projects that never proceed, because grid costs are shared and could affect other customers’ bills.
The issue matters as grid capacity is tight: the PJM grid operator’s latest capacity auction missed its reliability target by 6.8 gigawatts.
US utilities and grid operators are demanding collateral, longer contracts, higher rates and engineering study fees from data center developers before committing to grid connections.
Developers have requested 1,066GW of connections, but Wood Mackenzie expects utilities to commit to serving only about 28%.
The requirements aim to reduce the risk that utilities build infrastructure for projects that never proceed, leaving other grid users to share the costs.
At Exelon, high-probability data center load fell from 18GW at the end of 2025 to about 11GW in the second quarter after the company introduced transmission security agreements.
- Who
- US utilities and grid operators, including Exelon, and data center developers.
- What
- Utilities are requiring financial commitments and fees before committing to grid connections.
- When
- The article was published on October 21, 2026; it also reports changes at Exelon through the second quarter.
- Where
- The United States.
- Why
- To reduce the risk of building grid infrastructure for projects that do not proceed, since grid costs are shared.
This story does not have two clearly opposing sides.
Utility Dive wrote about phantom data centers.
Exelon's high-probability data center load stood at 18GW.
TechRadar reported that 67% of electricity executives surveyed by Capgemini were seeing speculative capacity applications.
Exelon's high-probability data center load was about 11GW after it began requiring transmission security agreements.
- Requested grid connections
- 1,066GW
- Expected utility commitments
- About 28% of requested connections, according to Wood Mackenzie
- Exelon high-probability load
- Fell from 18GW at the end of 2025 to about 11GW in the second quarter
- Exelon projects under study
- Fell from about 43GW to 25GW
- Exelon capital plan
- $41 billion through 2029
What people are saying
How do you know what's real?