Bypassing the Grid: How Data Center Developers Are Building Their Own Power Plants

Executive summary

In recent years, the time to connect a data center to the power grid has grown significantly. In response, many data center developers are choosing to build their own power plants and avoid the grid—or connect later.

In what we believe is the most comprehensive analysis of this trend to date, we identified 59 data centers with a combined capacity of ~90 GW that plan to build their own power "behind-the-meter." That represents more than 25% of all planned data center capacity in the United States, according to Cleanview's project tracker.

In the last year, this trend has gone from niche to mainstream. 92% of the projects we identified—representing approximately 82 GW—have been announced since the beginning of 2025. A year ago, behind-the-meter data center power was a curiosity, embodied by xAI's controversial decision to truck mobile generators into Memphis. Now it's an increasingly common development strategy.

Nearly every hyperscaler is pursuing behind-the-meter power projects—either directly or through partners. We identified projects from Meta, Microsoft, Amazon, and Oracle. AI labs like OpenAI and Anthropic have signed leases for more than 10 GW of behind-the-meter power.

Data center developers are using anything they can get their hands on

The equipment being deployed is not what utilities typically buy to generate power. Heavy-duty combined-cycle gas turbines—the most efficient option for baseload power—have long lead times and are largely unavailable. Data center developers are instead turning to:

• Mobile gas generators strapped to semitrucks
• Aeroderivative turbines originally designed for aircraft and warships
• Reciprocating engines that ramp fast, but are less efficient
• Refurbished turbines acquired from industrial operations

In our research, we came across a company that typically sells cruise ship engines that struck a deal to power a data center. One developer, unable to secure enough conventional turbines, placed a $1.25 billion order with Boom Supersonic—a company that has never sold a power generation product. Elon Musk's xAI famously drove in semitrucks with natural gas generators on the back to build what was at one time the world's largest data center.

Power generation efficiency is out. Speed to power is all that developers care about. AI data centers can generate $10–12 million per MW annually, or $10–12 billion per GW. Bringing a data center online even a few years early could result in tens of billions in revenue that would otherwise be forgone. In this environment, developers are willing to overlook inefficiencies that could cost millions of dollars.

Among OEMs, Caterpillar has the highest market share (33%) of projects we track. We found more than 8.8 GW of permitted Caterpillar engines and Solar Turbines. Bloom Energy rose in market share (14%) since our last report in February due to its megadeal with Oracle to power Stargate Project Jupiter in New Mexico. The full report has market share estimates for the top 10 OEMs.

Development is concentrating in a few mostly red states

Just five states account for 83% of all proposed BTM capacity. Two patterns stand out among top states: proximity to major natural gas production regions and regulatory frameworks that favor rapid development.

Texas leads total announced capacity by a wide margin, driven by Permian Basin gas supply, extensive pipeline infrastructure, and the state's permissive regulatory environment. Ohio leads the country in behind-the-meter capacity under construction with projects from Meta and EdgeConneX that will add a combined 736 MW of gas generation capacity. Both projects are located within miles of each other in the New Albany Business Park east of Columbus.

We expect ~3 GW of capacity to be online by the end of 2026

While the behind-the-meter data center market is enormous on paper, it's still nascent in practice. Of the roughly 90 GW of generation capacity we've identified across all projects, only about 2 GW is actually operating today—2.2% of the total. 1.2% is under construction. Another 36% has been permitted, and the remaining 60% exists only as announcements or early-stage plans.

As of mid-2026, approximately 2 GW of behind-the-meter generation capacity is online across four projects. The vast majority of that belongs to xAI. Colossus 1 and 2 outside Memphis account for 1,498 MW of operating gas turbine capacity — a figure that has grown steadily as xAI added dozens of temporary mobile turbines at the Southaven power plant site.

Satellite images of Colossus 1 and 2 outside of Memphis, TN. Captured May 13, 2026. © Airbus DS (2026)

By the end of 2026, total operating capacity should grow to between 2.8 and 3.2 GW. After 2026, the range of possible outcomes grows significantly. If all projects with signed tenants reach their construction timelines—a big if in the current environment—then another 10 GW could come online in 2027, bringing the cumulative total to 13 GW. But there's good reason to be skeptical of this outcome.

Permitting delays are slowing behind-the-meter data centers down

Permitting issues have delayed behind-the-meter data centers across the country. Earlier this year one of OpenAI and Oracle's signature Stargate projects experienced a major setback when the State of New Mexico blocked a planned gas pipeline that would have fueled the project's 2.45 GW onsite power plant. Our satellite analysis suggests the project is likely to miss its target of coming online in 2027.

In New Jersey, Microsoft's partner Nebius is struggling to obtain an air permit to run a 400 MW onsite gas power plant. The two companies signed a $17.4 billion deal in September 2025. The compute is scheduled to be delivered in 9 tranches, with 7 of them dependent on the onsite gas plant coming online in 2026.

In a scenario where many projects experience delays like this, cumulative behind-the-meter capacity could be as low as 5 GW by the end of 2027—compared to 13 GW if all projects with signed tenants meet their timelines.

How we identified projects and equipment

To identify behind-the-meter projects, Cleanview analyzed hundreds of permit documents, SEC filings, utility filings, and press releases. For each project, we tried to trace what equipment was actually being installed—not just what was being shared in a press release. Air quality permits, in particular, often list specific turbine models and capacities—details that reveal a developer's power strategy in ways that press releases do not. The result is a granular view of how data centers are actually getting built, and who is supplying the equipment to power them.

For each project, we analyzed high-resolution satellite images from Airbus in order to check the status. This helped us understand if a project's generation project was under construction or not. We also used satellite images to review historical construction timelines for projects like Stargate Abilene in order to estimate future timelines for projects that have begun construction.

About Cleanview

Cleanview tracks 10,000+ clean energy and data center projects, 500+ developers, and key market trends in real-time. Cleanview's research has been cited in The New York Times, Bloomberg, The Washington Post, and dozens of leading industry publications.

The company was founded by Michael Thomas, a recognized thought leader in clean energy and data centers who writes a weekly newsletter reaching more than 75,000 subscribers and followers across all platforms.

Contact

If you are a journalist and want to interview the author of this report, please contact us here.