# AC transmission and Data centres and cloud

Large data centre campuses now ask for 100 MW to 1 GW each and must be connected to the high-voltage AC grid, so the pace of transmission and substation build, not servers or capital, sets how fast they can open; in Northern Virginia waits for big connections reached up to seven years in 2024.

Source page: https://www.materialinsights.org/links/ac-transmission-and-data-centres-and-cloud/

[AC transmission](https://www.materialinsights.org/energy/e_hvac/) (energy) and [Data centres and cloud](https://www.materialinsights.org/industries/data_centres/) (industry): 3 relationships.

## How they are linked

### 1. Grid connection

*Physical flow · Strong · AC transmission → data centre campuses*

A data centre runs around the clock and cannot operate without a firm high-voltage supply, so every large campus needs a transmission connection and often its own substation; the utilities and power developers that serve them rate this 5 of 5.

- **1** enterprise type that depends on it
- **5 of 5** criticality for utilities and clean-power developers (transmission to campuses)
- **100 MW to 1 GW** size of recent data centre connection requests to Dominion Energy, 2024

Requests of this size are met from the transmission network and its substations. In India, large campuses seek dedicated connections from 400 kV substations, so the grid remains the main supply even where operators add on-site solar and batteries.

Enterprise types that depend on it:

- Utilities and clean-power developers: transmission to campuses (criticality 5 of 5)

Sources: [Material Insights](https://www.materialinsights.org/industries/data_centres/materials/); [Loudoun Now](https://www.loudounnow.com/news/power-crunch-to-push-data-center-connections-by-1-3-years/article_e122ad16-6a5a-11ef-909c-33c14c795f00.html); [GRI Institute](https://news.griinstitute.org/en/real-estate/india-data-centres-powering-the-9-gw-ambition-amid-grid-constraints)

### 2. Data centres drive grid demand

*Transition · Rising · Data centre growth → new transmission*

AI and cloud computing are adding large, concentrated loads in a few clusters, which existing lines were not built to carry, so grid operators must plan new lines and substations around them.

- **415 TWh** world data centre electricity use, 2024
- **945 TWh** IEA projection for 2030
- **around 20%** share of planned data centre projects at risk of delay without more transmission investment

The IEA expects US data centre use to rise by up to 240 TWh and China's by about 175 TWh by 2030, together nearly 80% of global growth. Its main caveat is the grid: without significant transmission investment, a fifth of planned projects could slip. The relationship is two-way: data centre demand is one of the main reasons utilities now justify new high-voltage lines.

Sources: [DatacenterDynamics (IEA Energy and AI)](https://www.datacenterdynamics.com/en/news/iea-data-center-energy-consumption-set-to-double-by-2030-to-945twh)

### 3. Connection queues

*Shared risk · Strong · Transmission capacity → data centre timelines*

New lines and substations take years to permit and build, far longer than a data hall, so in the largest clusters the wait for grid capacity has become the main limit on new campuses.

- **up to 7 years** total wait for large (over 100 MW) connections in Dominion's Virginia area, 2024
- **12 to 36 months** added delay Dominion announced for large projects, 2024
- **6 to 12 months** extra time permitting new power infrastructure can add to Indian data centre projects, 2025

In 2024 Dominion told developers that timelines would lengthen after a surge in requests, and proposed new 500 kV lines along part of Route 7 in Loudoun County. In India, Mumbai holds over 54% of operational capacity and operators report that power availability, not demand or capital, is the binding constraint.

Sources: [Loudoun Now](https://www.loudounnow.com/news/power-crunch-to-push-data-center-connections-by-1-3-years/article_e122ad16-6a5a-11ef-909c-33c14c795f00.html); [Bloomberg](https://www.bloomberg.com/news/articles/2024-08-29/data-centers-face-seven-year-wait-for-power-hookups-in-virginia); [GRI Institute](https://news.griinstitute.org/en/real-estate/india-data-centres-powering-the-9-gw-ambition-amid-grid-constraints)

## For investors

### Key learnings

1. Grid access is now the scarce asset for data centre developers: in India operators describe power availability, not demand or capital, as the binding constraint.
2. The IEA's path from 415 TWh in 2024 to about 945 TWh in 2030 depends on transmission; around 20% of planned projects could be delayed without it.
3. Transmission builders, substation equipment makers and utilities in data centre clusters gain from this load, while developers in congested hubs face years of delay.

### What to track

- **Utility large-load connection queues and quoted wait times**: Whether data centre pipelines can be delivered on schedule (Quarterly · utility filings (e.g. Dominion), PJM)
- **Data centre electricity use**: Load growth that justifies new transmission (Yearly · IEA, national regulators)
- **Transmission line and substation approvals in data centre states**: Easing or tightening of connection constraints (Monthly · CEA, state commissions, US state regulators)

## For policymakers

### Key learnings

1. India's data centre capacity rose from 375 MW in 2020 to about 1.5 GW in 2025, and transmission planning must keep pace with this concentrated load.
2. Concentration in Mumbai strains the local grid, so planning new 400 kV substations and lines near emerging hubs can steer investment to other states.
3. Faster permitting of power infrastructure shortens data centre timelines directly, since approvals can add 6 to 12 months to Indian projects.

### What to track

- **Data centre capacity by state**: Where new grid capacity is needed (Yearly · MeitY, industry reports)
- **Transmission and substation additions in data centre hubs**: Whether grid build keeps pace with load (Monthly · Central Electricity Authority, state transmission utilities)

## India

India's data centre capacity reached about 1.5 GW in 2025, with Mumbai holding over half of operational capacity and facing local grid strain; the government says the national transmission system is being expanded to meet the demand.

## Sources

1. [Data centres and cloud: materials](https://www.materialinsights.org/industries/data_centres/materials/), Material Insights (2026)
2. [IEA: data center energy consumption set to double by 2030 to 945TWh](https://www.datacenterdynamics.com/en/news/iea-data-center-energy-consumption-set-to-double-by-2030-to-945twh), DatacenterDynamics (IEA Energy and AI) (2025)
3. [Power crunch to push data center connections by 1 to 3 years](https://www.loudounnow.com/news/power-crunch-to-push-data-center-connections-by-1-3-years/article_e122ad16-6a5a-11ef-909c-33c14c795f00.html), Loudoun Now (2024)
4. [Data centers face seven-year wait for Dominion power hookups](https://www.bloomberg.com/news/articles/2024-08-29/data-centers-face-seven-year-wait-for-power-hookups-in-virginia), Bloomberg (2024)
5. [India data centres: powering the 9 GW ambition amid grid constraints](https://news.griinstitute.org/en/real-estate/india-data-centres-powering-the-9-gw-ambition-amid-grid-constraints), GRI Institute (2025)
6. [India's DC capacity almost touched 1.5 GW in 2025: IT Ministry](https://w.media/indias-dc-capacity-almost-touched-1-5-gw-in-2025-it-ministry/), W.Media (2026)