The power development funnel: from siting to interconnection

The data center global market is expanding rapidly, with estimations showing that by 2030, companies will invest $2.8 trillion on data center infrastructure in the United States, according to McKinsey. With this in mind, it’s no surprise that everyone’s rushing to build. But when power is the most essential constraint and fewer optimal sites are available every month, how can developers ensure they move quickly to validate and secure power-ready sites?

The answer: validating smarter at every stage.

Traditional development treats power validation as a single gate that comes months after site control. After you’ve secured land, filed interconnection, and waited 12-18 months for study results. By the time thermal constraints, upgrade costs, or capacity limits surface, you've already committed capital, and your competitors may have locked up better alternatives.

The power development funnel inverts this model. Instead of sequential validation after commitment, it enables continuous power intelligence throughout site selection while answering critical questions at each decision point before capital is deployed:

• Where is the viable land close to the grid? (Siting)
• What will power cost, and is capacity available? (Early Qualification)
• How much load can this POI support? (Risk Assessment)
• What will interconnection actually require? (Validation)

Each stage builds on the last, progressively narrowing focus from regional screening to POI-specific validation. But the competitive advantage comes from speed at every stage. What used to take months of disparate tools and consultant-led studies now happens in days or weeks, allowing developers to:

• Evaluate more sites in parallel
• Eliminate non-viable options before competitors waste time on them
• Lock up the best power-ready locations while others are still waiting for studies

In a market with $2.8 trillion chasing a shrinking pool of optimal sites, the developers who can compress speculation to certainty will win.

1. Siting: start with foundational grid intelligence

Power-constrained development begins with a simple question: where can you actually plug in?

Effective siting requires layered infrastructure mapping that shows transmission voltage classes, substation locations, and proximity to fiber and gas in a single view.  The goal is to rapidly eliminate regions where fundamental infrastructure gaps will block progress, regardless of land quality. This foundational step prevents months of wasted effort pursuing sites that can't support the load profile your project requires.

Speed advantage: What used to require weeks of manual desktop research now happens in minutes with the right mapping tools. Screen entire states in an afternoon.

2. Early qualification: understand power economics and grid capacity

Once you've identified regions with the right infrastructure backbone, the next question is economics: what does power actually cost here, and if there is available  capacity?

Locational Marginal Prices (LMP) reveal the delivered cost of electricity at specific nodes across the grid. High LMP zones signal either constrained transmission or expensive local generation, both of which translate to higher operating costs or required infrastructure investment. Comparing LMPs across potential development areas helps prioritize where to focus limited origination resources.

But low power costs mean nothing without available capacity. This is where transmission heatmaps become essential. Heatmaps provide a visual screening layer that shows estimated available MW capacity across substations and transmission corridors. They help developers quickly identify where the grid can absorb additional load, and where it can't, before investing in site control or detailed studies.

While heat maps don't replace formal interconnection studies, they dramatically narrow the search space, allowing teams to focus diligence on locations where both economics and physical capacity align.

Speed advantage: Screen hundreds of potential POIs in hours instead of pursuing site control on power-constrained locations and discovering capacity issues 6-12 months later. By the time traditional developers discover constraints, you've already moved to the next opportunity.

3. Assess: power development risk signals

With a shortlist of promising sites, developers need to understand not just if power is available, but how much and under what conditions.

Withdrawal headroom analysis provides a high-level screen of available electrical capacity at a potential point of interconnection. Unlike heat maps, which show regional patterns, headroom analysis zooms in on a specific POI and evaluates thermal and voltage constraints across multiple planning years. Critically, it incorporates planned transmission upgrades and queued generation, contextualizing how future grid changes could expand or constrain available capacity.

This stage is about sizing: can this site support 100 MW? 500 MW? Or is capacity exhausted at current load levels? Headroom analysis answers these questions early, before you're locked into a specific interconnection path.

Speed advantage: Evaluate multiple POI options in parallel and size projects appropriately before filing formal studies, avoiding costly re-studies or abandoned applications while competitors pursue single-threaded strategies.

4. Power validation: de-risk before you submit

Interconnection applications require significant deposits and trigger lengthy study timelines. Submitting without confidence in feasibility is expensive.

Before filing, developers should validate their assumptions with an ISO-grade power flow study (see our Hansford County, TX study). These studies model how withdrawing power at a specific POI affects the broader transmission system under normal and contingency (N1-1) conditions. They identify binding constraints, estimate required upgrades, and provide a credible basis for sizing interconnection requests.

Speed advantage: Move from speculative site selection to validated interconnection strategy in weeks, not quarters. Submit applications with confidence while competitors are still waiting for consultant deliverables. With AI-enabled Power Flow Studies, like Paces’, you can move from question to validation in 5 days. 

The accelerated path forward

The truth is, no two teams de-risk projects in the same order. Yet most power validation tools force teams into rigid workflows with heatmaps that only work at the top of funnel, consultants who only deliver full studies after months of waiting, or internal power teams stretched too thin to keep pace with deal flow.

Winning development teams need power intelligence that scales across the entire development funnel, from early screening through final validation, delivered in days, not months, without sacrificing technical rigor. That’s where the power funnel, paired with an end-to-end power development tool like Paces, can be the difference between years in development using disparate tools and workflows to weeks in development using one end-to-end tool that allows you to connect to power, faster. 

The result: Lock up power-ready sites 12-18 months faster than traditional approaches. Real acceleration happens when power screening, validation, and risk analysis exist within a unified system. Where LMP data, heat maps, headroom analysis, and power flow studies connect in the same system, allowing developers to have a holistic view of their projects.

That's the approach Paces enables. Our map and site search allows you to layer on critical infrastructure information with LMP and heatmaps data. Withdrawal Headroom Analyses and Power Flow Studies are delivered in 5 days, so you can accelerate validation and development. The developers who can compress timeline from speculation to certainty will secure the best power-ready sites. The rest will chase what's left.If you want to see how the power development funnel works in practice, book a demo. 

‍