2026 Utilities Insights on Onsite Power Strategies

This technical report discusses the evolving role of onsite power in serving large load customers, particularly data centers. It outlines the barriers utilities face, including interconnection timelines, equipment availability, and community acceptance, which have reportedly worsened in recent months. The report highlights that 61% of data center developers prefer onsite power when grid power is unavailable, with utilities expecting onsite power to fulfill 34% of large load demand by 2030 and 41% by 2035. The report details various benefits of onsite power, such as faster time to power, reduced transmission and distribution upgrade costs, and improved reliability. Additionally, it emphasizes that utilities are beginning to view onsite power as a permanent infrastructure component rather than a temporary solution. The document concludes by discussing the implications for utilities in integrating onsite generation into their service offerings and the potential for hybrid models that combine grid services with onsite generation.