Google's AI expansion faces a major obstacle: significant delays in connecting new data centers to the American power grid. Marsden Hanna, Google’s Global Head of Sustainability and Climate Policy, identified these transmission barriers as the "number one challenge we're seeing on the grid." Wait times for interconnection have soared, in some cases exceeding a decade.
This infrastructure crisis constrains the rapid growth of cloud capacity. This capacity is essential to support increasing demand for AI workloads.
To mitigate these delays, Google pursues a 'co-location' strategy. This approach involves building data centers directly adjacent to existing power plants. This allows the company to bypass the congested transmission system and avoid lengthy waits for grid connection approvals.