Utilities and energy operators are struggling to meet the baseload power demands of newly planned high-performance computing centers. Interconnection queues in primary data center markets now extend up to five years, driving operators to evaluate alternative power procurement strategies including dedicated small modular nuclear reactors.
Transmission Constraints
Grid operators cite transformer supply shortages and aging transmission lines as key friction points. Power purchase agreements (PPAs) are increasingly structured around localized energy generation and grid-scale battery storage to mitigate regional reliability risks.