'How do you know what's real?': US utilities are making AI data centers prove they exist before handing over power connections — as 50% of planned buildouts are currently being delayed, stalled, or canceled
Many providers are stuck on an awkward conundrum about their newest customers: are they real?
US data center developers have requested 1,066GW of grid connections, but utilities are now demanding more stringent requirements. Only about 28% of these requests are expected to be served by utilities, with the remaining 72% potentially being "phantom" data centers. Utilities are requiring data center developers to provide collateral, longer contracts, and study fees to weed out non-existent projects.
Exelon, a major utility company, saw its high-probability data center load decline from 18GW to 11GW after implementing stricter requirements. This trend is causing delays, cancellations, and price increases for households and businesses reliant on the grid. Utilities are implementing longer contract lengths and minimums to mitigate the risk of unfulfilled demand.
However, it remains unclear how much of the AI data center buildout is real, leaving many stakeholders uncertain about the future.
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