Load Interconnection Queues: The Key to Data Center Growth
- Ishan Bhattarai
- Dec 30, 2025
- 5 min read
Updated: 4 days ago
The digital gold rush is no longer just about chips and software; it’s about power. As Artificial Intelligence (AI) and machine learning reshape the global economy, the demand for data centers is skyrocketing. However, developers are hitting a massive bottleneck that has nothing to do with building materials or fiber optics. The real challenge lies in the load interconnection queue.
Traditionally, energy developers and utilities have focused on generation interconnection queues, which track new power supply projects looking to connect to the grid. However, a shift is underway as load interconnection queues are gaining attention as a critical tool for understanding where large power consumers, like data centers, are planning to connect. For data center developers, understanding the queue isn't just a technical necessity- it’s the difference between a project that breaks ground and one that sits in limbo for years. In the modern landscape of infrastructure development, one thing is becoming crystal clear: Site selection is now grid selection.
What is a Load Interconnection Queue?
A load interconnection queue is a list maintained by an Independent System Operator (ISO) or utility that tracks major power consumers seeking to connect to the grid. These queues provide insights into where demand is growing and help utilities plan for infrastructure upgrades.
In contrast, a generation interconnection queue tracks new energy supply projects such as solar farms, wind projects, and traditional power plants that are requesting grid access. While generation queues have historically been the focus of grid planning, load queues are now becoming just as important, especially in the age of energy-hungry data centers, AI workloads, and high-performance computing.
Why Do Load Interconnection Queues Matter?
Load interconnection queues play a critical role in accelerating site selection for data centers. By analyzing these queues, developers can pinpoint which substations and grid nodes are already being considered for large-scale power loads, helping them avoid congested areas and focus on locations with the best chances of securing power quickly. Additionally, utilities rely on these queues to identify future power demands and plan infrastructure upgrades accordingly. Understanding where demand is expected to grow allows for better grid management and more strategic investments in transmission expansion.
Beyond infrastructure planning, load queues also provide valuable competitive intelligence, offering insights into where other large power consumers such as data centers, industrial facilities, or manufacturing plants are planning to interconnect. This knowledge can influence market strategies and give companies a competitive edge in securing prime locations before others move in. To further support site selection, feasibility reports can provide a detailed analysis of a given parcel’s suitability for data center development, taking into account power availability, environmental factors, and infrastructure readiness.
The Shift: From Generation to Load
For years, interconnection queues were discussed primarily in the context of renewable energy generation. Today, the narrative has shifted to "large load" customers, like data centers. Unlike standard industrial sites, a modern hyperscale data center can pull hundreds of megawatts (MW) from a single Point of Interconnection (POI). Because this demand is so concentrated, utilities cannot simply "plug and play," so the narrative has shifted. As demand surges, data center developers are not only competing with each other but also with industrial facilities, electric vehicle (EV) charging hubs, and other large consumers for grid capacity.
The queue is a sequential waiting list. Most ISOs operate on a "first-come, first-served" basis, which has led to "speculative queuing." Developers often grab a POI spot before they have a site secured, clogging the system for legitimate projects. In major hubs like Northern Virginia or Columbus, Ohio, the time it takes to move from an initial request to an energized site can now span 4 to 7 years.
The surge in interconnection queue requests reflects major changes in the U.S. power generation mix, while also highlighting deep structural and regulatory challenges for projects seeking grid access. According to a Berkley Lab Report, over the past decade, average queue wait times have grown by 70%, withdrawal rates remain high at roughly 80%, and interconnection costs have increased- particularly for wind, solar, and battery storage projects.
Region | Primary Hub | Average Wait Time | Key Policies |
PJM | Northern Virginia | 4-7 years | Moving to a "First-Ready, First-Served" cluster model; currently clearing a massive backlog. |
ERCOT | Texas | 1-3 years | Known for "Connect and Manage"; however, large-load requests jumped 300% in 2025, leading to stricter "Large Load" study requirements. |
SPP | Midwest | 3-5 years | Implementing an Annual Cluster Study; prioritizing projects with high site control and financial readiness. |
In this competitive environment, access to the right data and analytical tools is critical. Platforms like LandGate help developers identify areas with available power capacity and grid proximity earlier in the site selection process, enabling more informed decisions, reducing interconnection risk, and improving project viability.
Technical Barriers to Entry
To secure power, developers must move through a gauntlet of studies that determine if the existing infrastructure can support the new load without compromising reliability.
1. Assessing Feeder Headroom
Before a project even enters the formal queue, developers must evaluate Feeder Headroom- the amount of additional load a specific distribution feeder or transmission circuit can handle before reaching its thermal or voltage limits.
High Headroom: Indicates a "ready-to-serve" site with minimal infrastructure changes.
Low Headroom: Signals that the utility will need to perform significant upgrades to accommodate the request.
2. Identifying the Optimal POI
The choice of a Point of Interconnection (POI) is the most critical decision in site selection. A POI closer to a high-voltage transmission substation often results in a more stable connection, but if that substation is already clustered with other data centers, the queue wait-times increase exponentially.
3. Calculating Network Upgrade Costs
If the grid cannot support the new load, the developer is usually responsible for Network Upgrade Costs. These are the expenses required to reinforce the broader utility system to ensure the new data center doesn't cause outages elsewhere. These costs can include:
Installing new high-capacity transformers
Re-conductoring existing transmission lines
Building entirely new switching stations
How Data Center Developers Can Navigate the Queue
To succeed, developers are shifting from reactive to proactive energy strategies:
Front-End Due Diligence: Use GIS-based tools to analyze Feeder Headroom and grid saturation before submitting a formal request.
Site-Specific POI Analysis: Identify parcels that offer the path of least resistance to the transmission backbone to minimize Network Upgrade Costs.
First-Ready, First-Served: Align with new FERC reforms (like Order No. 2023) that prioritize projects with higher financial readiness and site control.
Load Interconnection Data & Future Insights
As the demand for power-intensive infrastructure continues to rise, understanding load interconnection queues will be crucial for data center site selection, energy development, and grid optimization. By keeping a close eye on where large loads are queuing for power and having access to detailed offtake capacity insights, companies can make smarter decisions, avoid delays, and stay ahead in an increasingly competitive energy landscape.
The data center industry is no longer just about real estate; it’s about energy logistics. At LandGate, we provide the data developers need to see through the fog of the grid. These critical insights map load interconnection queues directly to substations, offering a clearer picture of where large power consumers are planning to connect. In addition, LandGate’s offtake data (information on the amount of power that can be withdrawn from each substation) provides a crucial layer of intelligence for site selection and infrastructure planning.
By integrating queue data with substation capacity and grid constraints, LandGate helps stakeholders evaluate the feasibility of interconnections in real-time. This level of visibility is essential for avoiding congested nodes, identifying high-priority substations, and planning strategic investments in grid infrastructure. Having access to both load queue and offtake data enables data center developers, utilities, and energy planners to make informed decisions that reduce risk and accelerate project timelines. Additionally, LandGate’s feasibility reports provide a comprehensive assessment of a parcel’s readiness for data center development, incorporating key factors such as power availability, fiber access, and zoning considerations.
