Glossary
behind-the-meter
A power arrangement where generation sits on the same side of the utility meter as the load, letting a data center draw directly from the plant and bypass the grid.
A power configuration where the generation and the load are physically co-located and electrically connected before the utility’s metering point. The data center pays the generator directly rather than buying from the grid. Useful because it sidesteps grid interconnect queues (years long in PJM, ERCOT, and other constrained markets) and avoids paying retail transmission rates.
The pattern became central to 2024 to 2026 AI siting. Amazon-Talen Susquehanna, the announced Stargate Abilene site, several Google deals: all rely on behind-the-meter delivery to bring multi-GW loads online faster than the grid can accommodate them. FERC ruled against the original Amazon-Talen behind-the-meter expansion in November 2024, signaling regulatory friction; the legal status remains under active dispute.
The structure is partly a sovereignty question. Behind-the-meter generation reduces the data center’s exposure to grid politics and rate cases but also removes its load from the public-grid customer base, shifting fixed-cost recovery to other ratepayers.