Transmission Troubles | Infrastructure Lags Demand Growth

byCarson Kearl, Enverus Intelligence® Research (EIR) Contributor

Enverus Intelligence® Research (EIR) and many others have published at length on the coming wave of load growth that starkly contrasts more than a decade of stagnation. What is discussed less is how challenging system upgrades and expansions have become in recent years (Figure 1). To identify two markets that stand out, we expect transmission systems will need to grow 14% and 10% in ERCOT and WECC respectively, representing hundreds of miles of system expansions each year over the next five years. What happens if these infrastructure projects fail to materialize? One vein of solutions gaining more attention is temporary quick-install power systems like those developed by VoltaGrid, Life Cycle Power, Solaris Electric and others. Data center developers, the largest force behind load growth are turning to quick-fix solutions for essential projects, like xAI with its Memphis Colossus artificial intelligence supercomputer facility.

While many large loads face multiyear wait times and development hurdles in the queue, well-capitalized firms that are willing to push the envelope may be able to find a haven in regulated markets where conditions are ideal. At its Memphis site, xAI utilized the infrastructure from an old electronics manufacturing facility with existing grid connections and proximity to both power and natural gas. Working with a utility and midstream partner, it was able to set up a facility with nearly 100 MW of power in less than three months. EIR thinks more opportunities like this are available and regulated markets could provide a refuge from lengthy interconnection queues.

Enverus Intelligence® Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. See additional disclosures here.

Picture of Carson Kearl, Enverus Intelligence® Research (EIR) Contributor

Carson Kearl, Enverus Intelligence® Research (EIR) Contributor

As an analyst on the Enverus Intelligence® Research (EIR) team, Carson is the lead on data centers and advanced energy technologies. He was previously an analyst on the macro team and has additional experience advising large industrial consumers on their energy consumption. His education in economics at the University of Alberta focused on industrial organization and power markets.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content
Time-to-power gap Big generation’s Achilles’ heel in the AI data center race
Post
Power & Renewables, Power Trading
ByEnverus

PJM has 113.6 GW of announced large-load capacity, far more than the 28.5 GW under construction. See what the gap means for reliability and planning.

U.S. natural gas prices face power demand drag
Post
Power & Renewables, Power Trading
ByEnverus

ERCOT data shows large loads ramping at different rates as solar and battery additions keep pace, with new supply expected to slow in 2027.

Global energy markets brace for supply shock and further price gains
Post
Trading & Risk
ByAl Salazar, Enverus Intelligence® Research (EIR) Contributor

Bank of Canada energy inflation risks stagflation as oil spikes push headline inflation higher ahead of a pivotal rate decision.

Enverus Press Release - Speed through records with Enverus Instant Analyst™ - Courthouse
Post
Financial Services
ByColton Wright

Where will future oil inventory come from? Explore the Barnett-Woodford estimate and the spacing and cost assumptions investors should test.

Enverus Press Release - E&Ps with natural gas + CCS pave way for model data center development
Post
Analyst Takes
ByTom Liskey

Read Part 2: Guyana Oil and the Venezuela-Essequibo Dispute The ICJ Will Rule. Governments Will Change. Why Essequibo Still Matters.  Oil companies are accustomed to thinking in decades.  Governments rarely operate on the same timetable.  The Essequibo dispute demonstrates what...

Mineral Management
Post
Minerals
ByTemi Oyetayo

Explore our reliable well log library for standardized logs, depth-registered rasters, and workstation-ready LAS files—start your subsurface analysis faster.

Enverus Press Release - Prioritizing renewable PPA offtaker targets proves more challenging than expected
Post
Power & Renewables
ByThomas Popa

Senate’s bipartisan permitting bill data centers grid interconnection could curb speculative queues and speed transmission buildout.

Enverus Press Release - Enverus releases Investor Analytics: Refined, actionable financial insights at your fingertips
Post
Analyst Takes
ByTom Liskey

Read Part 1: Venezuela-Guyana Essequibo Dispute: A Brief History When Oil Changed the Stakes: Liza-1, Stabroek and the Essequibo  Oil did not create the Essequibo dispute.  The disagreement over the territory had already survived empires, independence, arbitration, treaties and generations...

Enverus Press Release - Renewable diesel: Too much of a good thing?
Post
Data Centers, Financial Services+1
  • Power & Renewables
ByEnverus

Validate data center natural gas supply: check pipeline capacity, contracts, routing, and long‑term durability before you commit.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Ready to Subscribe?

Ready to Get Started?