Introduction

U.S. data center construction has overtaken the bulk power system. Hyperscale compute campuses can now be built in under 18 months. In contrast, new transmission lines, substations, and utility-scale generation often take 5–10 years. In many states, that mismatch is the constraint on growth, as data centers complete construction only to sit waiting for interconnection.

Behind-the-meter (BTM) and colocated power—what could be collectively called “campus-dedicated” power—offers a way to close that gap. Allowing large campuses to bring some of their own firm capacity, while retaining a connection to the grid for backup and supplemental service, can expedite the start of operations, reduce strain on transmission, and improve resilience for other ratepayers. But in most states, the legal and regulatory framework for campus-dedicated power was designed long before the AI era, and is therefore unfit for the speed and scale of the present moment.

This supplement to the Foundation for American Innovation’s State Permitting Playbook is designed to help states fix that. Whereas the main playbook focuses on environmental review and permitting processes, this paper identifies opportunities for state reforms to ensure that BTM and colocated energy can be deployed quickly, safely, and without shifting costs to other customers.