Datacenter Interconnection 101
How long does grid interconnection take for datacenters?
Grid interconnection timelines vary dramatically by ISO: ERCOT averages 4-7 years with 205 GW in queue, PJM 3-5 years with 250+ GW backlog. The process involves application, study phases (feasibility, system impact, facilities), and construction. Costs range from $500K to $50M+ depending on required upgrades. Strategies to accelerate include site selection near substations, acquiring queue positions, and behind-the-meter generation.
Key Data Points
- ERCOT Queue: 205 GW (4-7 year timeline)
- PJM Queue: 260 GW (3-5 year timeline)
- Study Cost: $135K - $950K total
- Construction Cost: $2.5M - $80M+
- Study Phases: Feasibility (3-6mo), System Impact (6-18mo), Facilities (3-6mo)
Interconnection Process Overview
Application
Submit request, pay deposit, enter queue
2-4 weeks
Feasibility Study
Initial technical assessment
3-6 months
System Impact
Detailed grid modeling
6-18 months
Facilities Study
Engineering & cost estimates
3-6 months
Construction
Build required upgrades
12-36 months
Interconnection by ISO/Region
| ISO/Region | Queue Size | Avg Timeline | Deposit | Status |
|---|---|---|---|---|
| ERCOT (Texas) | 205 GW | 4-7 years | $100K+ | Severely congested |
| PJM (Mid-Atlantic) | 260 GW | 3-5 years | $1M+ | Reform underway |
| CAISO (California) | 85 GW | 3-4 years | $500K+ | High demand |
| MISO (Midwest) | 180 GW | 2-4 years | $250K+ | Growing backlog |
| SPP (Great Plains) | 95 GW | 2-3 years | $100K+ | Moderate |
| ISO-NE (New England) | 35 GW | 2-3 years | $200K+ | Manageable |
Queue data as of January 2026. Check TTPS Tracker for real-time updates.
Interconnection Cost Components
Study Costs
Construction Costs
Strategies to Accelerate Interconnection
Site Selection
- •Choose sites near existing substations with capacity
- •Avoid areas with known transmission constraints
- •Consider sites with retiring generation (headroom)
- •Look for industrial sites with existing service
Queue Strategies
- •Acquire existing queue positions from other projects
- •Submit multiple applications at different sites
- •Apply for smaller initial capacity, expand later
- •Engage consultants with ISO relationships
Behind-the-Meter
- •On-site generation bypasses queue entirely
- •Natural gas can deploy in 18-24 months
- •Solar+storage in 12-18 months
- •Hybrid approach: BTM now, grid connection later
Utility Partnerships
- •Economic development agreements with utilities
- •Contribution-in-aid-of-construction (CIAC)
- •Utility-owned generation partnerships
- •Green tariff programs with priority treatment
Frequently Asked Questions
Can I buy an existing interconnection position?
Yes, queue positions can sometimes be acquired through project/site acquisitions or assignment agreements. Prices range from $10-50/kW depending on position, location, and time remaining. This is increasingly common in congested markets like ERCOT and PJM.
What are network upgrade costs and who pays?
Network upgrades are grid improvements needed to accommodate your load/generation. Costs can range from $0 (if existing capacity) to $50M+ (new transmission). Depending on ISO rules, you may pay upfront and receive partial refunds over time, or costs may be socialized.
How is FERC Order 2023 changing interconnection?
FERC Order 2023 (effective 2024) reforms the interconnection process: cluster studies instead of serial, stricter readiness requirements, financial commitment deposits, and faster timelines. Impact varies by ISO implementation.
What happens if my project is delayed?
Most ISOs allow limited delays with additional deposits. Extended delays may result in queue position loss and forfeited deposits. Milestone requirements are becoming stricter under FERC Order 2023 reforms.
Check Time-to-Power Scores
Our TTPS tracker analyzes interconnection queue data to score sites by expected time to power.
Open TTPS Tracker →