Building America’s new power grid: Can the transmission network grow to keep pace with rising electricity demand?

The United States faces an urgent need for expanded transmission infrastructure to meet surging electricity demand driven by AI, data centers, and industrial electrification. Current development is hindered by lengthy permitting cycles, complex cost allocation disputes, and significant interconnection queue backlogs that create financial uncertainty for developers. Experts propose innovative solutions, including a "floor and cap" revenue model inspired by Great Britain to de-risk investment and provide developers with revenue certainty. Additionally, proactive regional planning and standardized interconnection fees—such as those implemented by the Southwest Power Pool—offer paths to reduce costs and improve grid reliability. While bipartisan permitting reform legislation remains a critical potential catalyst for accelerating construction, developers and advocates continue to pursue incremental progress through state-level engagement and improved regulatory market rules to ensure the grid can support long-term economic growth and sustainability.