The explosive growth of AI and cloud computing has created an unprecedented demand for electricity. At the same time, utility-scale power projects are facing lengthy interconnection delays. As of the end of 2025, roughly 2,060 GW of generation and storage capacity remained active in U.S. interconnection queues, and for projects reaching commercial operation in 2025, the median wait from interconnection request to completion topped five years. With approval timelines like that, many data center developers are taking a different path — they’re building power solutions behind the meter instead of waiting for a grid connection.

Rather than relying solely on the transmission system, developers are investing in onsite natural gas generation, battery energy storage systems (BESS), and even planning for future small modular reactors (SMRs). These private energy systems allow facilities to move forward without waiting years for interconnection approval, helping meet the growing demand for AI infrastructure.

While this trend may appear to reduce the need for traditional grid infrastructure, the reality is quite different: it is simply shifting where engineering expertise is needed.

Private power systems require complex electrical engineering, including substation design, protection and control systems, microgrid controls, power system studies, relay coordination, and energy management systems. These projects also require engineers experienced in integrating multiple energy sources while maintaining reliability and power quality.

The work doesn’t end once the data center is operational. Most facilities will eventually seek a utility interconnection for backup power, increased capacity, or the opportunity to export excess generation back to the grid. When that happens, utilities and developers will still need experienced transmission, distribution, interconnection, and power systems engineers to design and execute these connections safely and efficiently.

For engineering professionals, the message is clear: the demand for power delivery talent isn’t disappearing — it’s evolving. Engineers who build depth in substations, microgrids, distributed energy resources, protection and controls, and grid integration now are positioning themselves for where the work is actually headed, on both sides of the meter.

If you’re an engineer weighing where to focus next — or a utility, developer, or consulting firm trying to figure out how to staff for this shift — let’s talk. GTR works exclusively in electric utility and power delivery talent, and we’re seeing this transition play out in real searches right now. [Reach out / Contact GTR] to talk through what it means for your team or your career.

Sources

• Lawrence Berkeley National Laboratory – Queued Up: 2026 Edition, Characteristics of Power Plants Seeking Transmission Interconnection (data through end of 2025)
• Federal Energy Regulatory Commission (FERC) – Interconnection and Transmission Proceedings
• U.S. Department of Energy – Grid Deployment Office
• North American Electric Reliability Corporation (NERC) – Reliability and Grid Integration Resources