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The North American power system is entering a pivotal decade. Artificial intelligence, cloud computing, and the digital economy are driving unprecedented data center growth, reshaping load forecasts, transmission planning, and reliability assumptions faster than traditional infrastructure can adapt.

Recent assessments from NERC, regulatory signals from FERC, and industry perspectives from utilities and manufacturers all point to the same conclusion:
the grid is changing faster than the systems designed to support it.

This month’s newsletter highlights the key trends shaping 2026—and what utilities, developers, and large-load customers must do to stay ahead.

Artificial Intelligence is impacting the power industry from both ends:

As a primary driver of large-load growth, led by hyperscale data centers
As a tool for grid optimization, enabling more accurate forecasting, planning, and operations

Utilities are already deploying AI-driven analytics for:

Load and weather forecasting
Demand response optimization
Distributed Energy Resource (DER) aggregation
Asset health monitoring and predictive maintenance

These analytics must be validated through rigorous engineering and system impact analysis.

Industry initiatives such as EPRI’s Open Power AI Consortium and utility-led demonstrations by Avista, PG&E, Ameren, and Portland General Electric show real operational promise—but also expose a growing readiness gap across the sector.

The question is no longer if AI will reshape the grid, but how fast utilities can adapt engineering, planning, and interconnection processes to keep pace.

The pace of data center deployment has outstripped nearly every historical planning model:

Traditional 54V in-rack systems were designed for kilowatts—not megawatts
Next-generation facilities are driving 800V DC architectures
Chip-level power consumption continues to rise as Dennard scaling breaks down

By 2030, approximately 27% of data centers are expected to rely entirely on on-site generation. However, the remaining 73% will depend on the bulk power system, placing enormous pressure on generation and transmission infrastructure. This trend is driving urgent demand for specialized engineering focused on large-load interconnections.

According to Lawrence Berkeley National Laboratory, more than 2.6 TW of generation and storage projects are currently queued—more than double today’s installed U.S. capacity—yet transmission remains the dominant bottleneck.

Utilities want to invest. Capital is available. The largest obstacle is permitting and execution.

North American transmission systems were built as regional networks, not an integrated continental grid.

As a result:

Projects require overlapping federal, state, tribal, and local permits
Environmental reviews and litigation introduce multi-year uncertainty
States resist infrastructure perceived to benefit neighboring regions

FERC’s recent transmission planning and cost allocation reforms aim to address these challenges—but 2026 will be the year those reforms are tested in practice. Project success increasingly depends on experienced Owner’s Engineer support.

FERC enters 2026 under intense pressure to:

Accelerate data center interconnections
Enforce new transmission planning rules
Balance affordability with reliability

New Chairman Laura Swett has made large-load interconnections a top priority, while former commissioners emphasize that this year will focus less on new rulemaking and more on implementation and accountability.

For utilities and developers, success will depend on defensible studies, realistic assumptions, and regulatory-ready engineering.

In 1995, Sandip (Sonny) R. Patel earned his Electrical Engineering degree from the University of Illinois, specializing in Electrical Engineering . But degrees don’t build legacies—action does. For three decades, he’s been shaping the future of engineering, not just as a licensed Professional Engineer across multiple states (Florida, California, New York, West Virginia, and Minnesota), but as a doer. A builder. A leader. Not just an engineer. A Licensed Electrical Contractor in Florida with an Unlimited EC license. Not just an executive. The founder and CEO of KEENTEL LLC—where expertise meets execution. Three decades. Multiple states. Endless impact.

Powering Reliability in the Age of AI and Large Load Growth

Editor’s Note

The Growing Role of AI in the Power Sector

NERC Sounds the Alarm on Resource Adequacy

Key Findings

Data Centers Are Reshaping Grid Planning Assumptions

Transmission and Permitting: The Critical Constraint

FERC in 2026: From Policy to Execution

What This Means for the Industry

How Keentel Engineering Supports the Path Forward

Let’s Build What the Future Demands

Let's Discuss Your Project

Sonny Patel P.E. EC

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