- Google says lengthy electrical transmission interconnection times — sometimes more than a decade — are the biggest barrier to bringing new data centres online.
- Company explores co-location beside power plants to circumvent delays but still prefers traditional grid links.
What happened: Grid woes slow data centre growth
Google has told industry and policymakers that the United States’ electrical transmission system has become the chief obstacle to powering its expanding network of data centres, which are increasingly needed to train and run artificial intelligence systems.
At an American Enterprise Institute event, Marsden Hanna, Google’s Global Head of Sustainability and Climate Policy, said wait times to connect a new facility to the grid can exceed 10 years in some regions, substantially delaying projects.
The long delays stem from outdated transmission infrastructure and protracted permitting processes, Hanna explained, insisting that the solution requires reform of how new lines are approved and improved utilisation of existing systems.
As a workaround, Google is exploring co-location arrangements — building data centres adjacent to power plants to sidestep lengthy interconnection studies — though this raises questions about costs, regulatory treatment and responsibility for infrastructure investments.
Despite experimentation with co-location, Google’s stated preference remains to connect directly to the grid once systemic barriers are addressed.
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Why it’s important
The issue highlights a growing tension in the U.S. energy and technology sectors. AI-focused data centres consume vast amounts of electricity, and projected demand growth is prompting scrutiny of how well the grid can cope.
Data centres already represent a substantial share of electricity use in parts of the country, and without transmission expansion and reform, projects could be delayed or moved overseas, affecting competitiveness.
The challenge also intersects with broader debates about energy policy, including how to balance investment in new transmission lines, renewable generation, and regulatory incentives to ensure stable, affordable power for businesses and consumers alike.
For Google — a unit of Alphabet Inc — and other tech giants racing to expand AI infrastructure, solving these grid bottlenecks will be essential to sustain growth while meeting climate and sustainability goals.
