The development sequence for institutional-scale data centers has inverted, with power access and fiber connectivity now dictating site selection, often before land acquisition. High-voltage transmission lines and substations, critical for AI loads, take 7-10 years to permit and construct, while data center shells build in 18-24 months. US high-voltage transmission construction plummeted from 1,700 miles/year in the early 2010s to 180 miles/year by 2022, creating immense interconnection backlogs.
US grid infrastructure buildout lags AI compute demand by years, making existing power capacity and interconnection queues the binding constraint for new data center supply.