As grid constraints intensify, plenty of US data centers are turning to behind-the-meter (BTM) power solutions. Power demand is growing and grid connection times are getting longer and longer. This is leaving some businesses having to wait an average of ten years to get access.

Given the pace of innovation and demand placed on data centers as AI booms, the power struggle is only expected to continue. Dave Bosco, SVP of commercial and strategy at PROPWR, explains why data centers need to look beyond the grid as a default source of power.

“With the grid unavailable, data center operators and hyperscalers have been in a frenzy for the past couple of years, but the reality that the grid isn’t going to be available is setting in,” Bosco explains. “So they’re asking, ‘can I get some grid power? If I can, how can I supplement it with BTM generation? Will it be islanded or grid-parallel?’ – there are a lot of ways to approach this.”

In the US alone, total electricity consumption sits at around four billion kilowatt-hours, attesting to the sheer level of demand placed on the grid. Research from firms like Goldman Sachs expect data center demand to escalate as high as 41GW in 2026 which means that, if everyone was able to access the grid connectivity they wanted, data centers could account for about 60 percent of US electricity load growth by 2030.

With this in mind, BTM power solutions are shifting from being a temporary bridge to being considered as a longer-term strategy for data centers.

“I think the broader industry trusted the grid by default – we thought it would come with some delays but would ultimately get everything taken care of, before reality started sinking in,” Bosco says. “In the US, utility operators are demanding capital upfront and commitments as a result, and you have to be able to prove you can take the load.”

With laws and regulations perhaps creating industry uncertainties, Bosco explains that data centers are looking to partners they can trust to deliver on expectations:

“Powering a data center is a whole different level, and only a few facilities are realistically being powered from BTM,” he adds. “You have to choose a partner who can best deliver the technology and service your business needs.”

Beyond the search for power, some operators are looking to BTM generation to secure the power they need without putting strain on the grid and local communities.

If a significant volume of generation is being brought online via this route and the necessary approvals are in place, Bosco is confident that data centers could export energy to the grid and help address local issues.

“Data centers can be a solution, not a problem,” he says. “They might even choose to subsidize some electricity – a big idea, but these facilities can do things like that.

“As businesspeople, we have to think creatively about communities and understand what matters to local residents. Water challenges are another important issue. I’m passionate about this because I think water will become the next precious resource, treated like gold. That’s a shame, because it’s a basic necessity for life.”

As AI factories advance, operators will have to think more about power resilience and future capacity. In order to keep progressing, these digital hubs need partners capable of providing high reliability and strong communication between all parties.

Data center service providers like PROPWR acknowledge that they need to consider more innovative ways to deliver value and address operators’ expectations.

“I believe data center operations will become more like factory operations, and BTM power can help facilitate that through the supply chain,” Bosco concludes. “It’s about thinking innovatively; there’s a common way to address a problem, but why not think differently and find a way to stand out?”

Click here to listen to the full DCD>Talks interview with Dave Bosco.