Report

The Navigator, Power and Energy Edition

AI is reshaping power demand faster than the grid was built to handle. See what that means for interconnection, load flexibility, and procurement strategy.

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The grid wasn't built for this scale. Now it has to be.

This special power and energy edition of The Navigator examines how AI-driven data center growth is straining the US grid faster than the interconnection system was designed to handle. It covers supply-side bottlenecks and emerging clean firm power technologies, demand-side flexibility and its billion-dollar stakes, new grid reliability requirements from NERC, and how carbon accounting and community opposition are both evolving in response.

What's Inside

  • Community opposition has become a key determinant of whether data center projects get built, and three distinct developer response postures separate the projects that advance from those that stall.
  • The interconnection queue in ERCOT and PJM holds over 500 GW on paper, but actual connection timelines run two to five times longer than FERC targets, withdrawal rates are high, and the One Big Beautiful Bill is now reshaping the technology mix entering the pipeline.
  • Power system modeling shows that curtailing an average of 5% of data center demand for under 1% of operating hours can prevent up to $5.5 billion in annual consumer welfare losses, even at 40 GW of ERCOT buildout.
  • NERC's first-ever Level 3 Alert on data center loads introduces new grid modeling requirements across three timescales, and raises the interconnection bar for large loads.
  • Proposed GHG Protocol scope 2 revisions would expose a significant emissions gap for large buyers using annual RECs, with the greatest exposure in PJM and ERCOT.

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Authors
Colin McCormick, PhD
Chief Innovation Officer
Dr. Colin McCormick provides science and technology expertise across a wide range of electricity and industrial decarbonization sectors, engineered carbon removal, and space technologies. He also supports Relae's work in data science and remote sensing, life-cycle assessment, and environmental policy analysis.
Derya Eryilmaz, PhD
Vice President
,
Power
Dr. Derya Eryilmaz is an energy economist and Vice President of Power at Relae. She provides expertise in the analysis of power market design, grid modeling, strategy for data center energy transition through emerging and renewables investments and flexible load.
Liam Kilroy
Energy Data Scientist
As a Data Scientist at Relae, Liam combines domain expertise in electricity markets with data science methods to build tools, perform research, and advise internal and external clients on a variety of energy and sustainability topics.
Peter Psarras, PhD
Director
,
Low-Carbon Systems
As a Principal Decarbonization Engineer at Relae, Pete works with clients to evaluate the deployment readiness of engineered carbon management solutions, translating lifecycle, techno-economic, and systems-level insights into actionable recommendations and decarbonization strategies.
Jonathan Goldberg
Chief Executive Officer & Founder
Jon is the founder and CEO of Relae, which designs, diligences, and delivers decarbonization solutions across sectors.
Douglas Bryan
Senior Manager
,
Power & Energy Systems
Doug provides deep expertise in energy markets, advising clients on the impacts of energy policy/regulations, large load interconnection, battery storage economics, and resource portfolio optimization.
Julia Millot
Senior Manager
,
Power Decarbonization
Julia advises clients on how to design and optimize power portfolios through predictive analytics, technology diligence, and grid modeling.
Daniel Garcia, PhD
Life Cycle Assessment Lead
Daniel Garcia, PhD, leads life cycle assessment (LCA) theory, research, and practice at Relae. He aims to implement cutting-edge LCA methods and ensure best-in-class quality LCAs across all technology categories at Relae, including electricity at the generator and grid level, leveraging the unique strengths of the science team.
Grant Gutierrez, PhD
Director
,
Community Impact & Resilience
Dr. Grant Gutierrez draws on his multidisciplinary background to lead the Community Impacts team, which drives the firm's work focused on social impact advisory and just transition strategy to deliver equitable development opportunities and increase community resilience to climate change.