Utility Power Delays: How Builders Can Power Projects While the Grid Catches Up

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Utility Power Delays: How Builders Can Power Projects While the Grid Catches Up

For a growing number of builders, the hardest part of a project is no longer financing, entitlements or labor. It's getting power. Utility power delays now stretch from months into years, and the equipment needed to energize a site — transformers, switchgear and new generation — is backordered across the country.

Whether you're developing an industrial building, a data center, a multifamily project or an EV charging site, this guide covers where the bottlenecks are in 2026, how long they're running, and how builders are getting power on schedule anyway.

Key takeaways

  • Five-year U.S. load growth forecasts have jumped roughly six-fold since 2022, and grid buildout isn't keeping pace.
  • Distribution transformer lead times went from 3–6 months in 2019 to 1–2 years or more; large power transformers average about 2.5 years.
  • Medium-voltage switchgear averages about 44 weeks, with some active projects quoting 1 to 1.5 years.
  • A new heavy-duty gas turbine ordered today may not arrive until around 2031.
  • Builders who treat power as a day-one workstream — and use bridge power, available used equipment and battery storage — keep projects moving.

Why power is now the critical path for new construction

For two decades, U.S. electricity demand was essentially flat. That era is over. Grid Strategies' 2025 national load report put five-year peak load growth at 166 GW by 2030 — about six times the forecast from 2022, and roughly 15 times New York City's peak demand. Data centers account for about 90 GW of that. Manufacturing, oil and gas, and electrification make up the rest.

NERC, the organization responsible for grid reliability, reached a similar conclusion in its 2025 Long-Term Reliability Assessment, released in January 2026. It projects summer peak demand rising 224 GW over the next decade and flags 13 of 23 North American assessment areas at elevated or high risk of shortfalls within five years. Some analysts, Grid Strategies among them, argue NERC overstates the risk. Even the conservative forecasts are far above what utilities planned for.

Here's what that looks like by project type:

  • Data centers: JLL's 2026 outlook puts the national average wait for data center power at about four years. Industry reports put a 100 MW request in Northern Virginia at up to seven. (More in our post on securing generators and turbines before the grid is ready.)
  • Commercial real estate: Developers report that power requests in primary data center markets run two to three times the capacity available.
  • EV charging: The time from first utility contact to energization can reach two years.
  • Industrial and cold storage: Substation and equipment backlogs are adding a year or more to schedules.
  • Multifamily and mixed-use: Loads are smaller, but local feeder capacity, panel upgrades and transformer availability still set the energization date.

The 5 electrical infrastructure constraints builders hit most

1. Utility energization queues and upstream upgrades

Every new or upgraded service starts with a utility application, a load study and an engineering design. If the local circuit or substation can't carry your load, the utility has to upgrade it first. That's where schedules break.

California is one of the few states that publishes targets. Under the Powering Up Californians Act (SB 410 and AB 50), the CPUC set a six-month average target for line and service extensions, with maximums of roughly 10 to 12 months. Upstream work is tracked separately, and its maximum timelines are much longer:

Upgrade your load triggers

CPUC maximum timeline

New or upgraded circuit

684 days (about 1.9 years)

Substation upgrade

1,021 days (about 2.8 years)

New substation

3,242 days (about 8.9 years)

When a project needs upstream capacity, the utility can pause the six-month clock and track that work on its own timeline. Large-load customers are also being asked for letters of credit, financial guarantees and detailed load profiles before a utility will commit.

2. Transformer lead times

Transformers are the clearest bottleneck. According to the U.S. Department of Energy, demand for distribution transformers is up 41% since 2019. Lead times went from three to six months in 2019 to one to two years or more by 2024.

Larger units are worse. Wood Mackenzie's Q2 2025 survey put power transformers at an average of 128 weeks and generator step-up (GSU) transformers at 144 weeks. It also estimated 2025 supply shortfalls of 30% for power transformers and 10% for distribution transformers.

If you need a unit now, check the transformers in our inventory, or send us the spec — kVA, primary and secondary voltage (for example, 4160V to 480V) and pad-mount or substation style — and we'll search our network.

3. Switchgear and medium-voltage equipment

The shortage doesn't stop at transformers. Wood Mackenzie's survey had switchgear averaging 44 weeks. One national contractor reports procurement ranges of 52 to 80 weeks for medium-voltage switchgear and 40 to 65 weeks for pad-mount transformers on its active 2026 projects. CoBank's July 2026 review found some grid equipment that once took under a year now carries three- to four-year lead times.

4. Generation backlogs

Building your own plant doesn't escape the queue. GE Vernova ended Q3 2026 with 122 GW of gas equipment backlog and slot reservations and is now taking reservations for 2032 delivery. Mitsubishi Power says demand is pushing its deliveries to 2031, and Siemens Energy has reported a gas turbine backlog near 70 GW. (See our 2026 lead-time Q&A for generators and gas turbines.)

That's why buyers are turning to equipment that already exists. In May 2026, Hallador Energy agreed to buy about 460 MW of secondhand Siemens gas turbines, generators and a steam turbine for $350 million, plus roughly $100 million to transport and refurbish them, rather than wait on a new-build order. As we've written, the best gas turbines never hit the open market — browse our gas turbines or ask what we can source off-market.

5. Permits, emissions rules and paperwork

Onsite and temporary generation has its own approvals. In California, portable diesel engines rated 50 hp and above fall under CARB's Portable Engine Airborne Toxic Control Measure. They generally operate under a statewide PERP registration or a local air district permit. That's why Tier 4 Final generators and CARB-compliant generators matter on California jobsites.

Outside California, local air permits, noise limits, fuel storage rules and fire code still apply. Put them on the schedule, not the punch list.

5 ways builders are getting power on schedule

1. Make power a day-one workstream

Engage the utility at site selection, not after design. Many utilities won't study a load until you show site control, so run land control and power studies in parallel. For large loads, industry advisors recommend starting utility conversations about three years out.

Ask for three things in writing: available capacity at the nearest feeder and substation, the upgrade scope your load triggers, and a realistic energization date. Then reserve long-lead transformers and switchgear early.

2. Use bridge power to start before the grid arrives

Bridge power is onsite generation that carries your load until permanent utility service is energized. It can cover construction, commissioning or full operations for months or years.

  • Construction and commissioning: towable diesel units, often Tier 4 Final, sized for tools, temporary facilities and testing. Browse our construction generators.
  • Longer bridge periods: natural gas generators cut fuel cost and refueling logistics where pipeline gas is available. Paired with heat recovery, they can keep earning their keep after the grid arrives (see our post on CHP natural gas generators).
  • Large or continuous loads: containerized multi-megawatt prime power generators or gas turbines, paralleled through switchgear.

For large data center builds, industry research puts first output from onsite bridge power at one to two years, versus multi-year grid queues. For smaller commercial loads, an in-stock generator can often ship in weeks.

3. Buy what's available now, not what's on a factory schedule

When new lead times run years, used, surplus and unused equipment is the fastest path. The key is buying verified equipment: load-test reports, maintenance records, hours, emissions certification and complete documentation. Here's why load-tested used generators are worth more than cheap auction units.

The same discipline applies to transformers and switchgear. Confirm nameplate ratings and voltages against your service, and ask for recent test reports such as oil analysis and insulation resistance. See what's ready to ship in our current inventory.

4. Add battery storage to stretch limited capacity

When the utility can serve part of your load but not all of it, a battery energy storage system (BESS) can cover the peaks so you fit under the service you can get. That's peak shaving. In a microgrid, BESS also smooths generator loading and provides instant backup. We currently offer new 5.64 MWh containerized BESS units.

5. Plan the exit so bridge equipment isn't stranded capital

Design the switchgear and site layout for the day the utility arrives. Bridge generators can stay on as standby generators, move to your next project, or be sold. Specify them with that second life in mind — and avoid the #1 mistake businesses make when buying a backup generator. When you're done with a unit, sell it to us.

Checklist: what to know before you call a power equipment supplier

  1. Load profile: kW or kVA for each phase — construction, commissioning and full operation — plus peak versus average.
  2. Voltage and phase: for example, 480V three-phase or 4160V medium voltage, at 60 Hz.
  3. Duty: standby, prime or continuous, and expected run hours per year.
  4. Duration: weeks, months or years until utility service, and what the equipment does afterward.
  5. Fuel: diesel delivery, pipeline natural gas availability and pressure, or dual fuel.
  6. Emissions jurisdiction: CARB or local air district rules and any Tier 4 Final requirement.
  7. Site constraints: footprint, noise limits, and access for rigging and delivery.
  8. Tie-in plan: how bridge power connects to permanent switchgear and the future utility service.

Have most of this? Submit it through PowerMatch and our team will come back with matching options.

How ARC Power Systems helps builders close the power gap

ARC Power Systems buys, sells and sources industrial and utility-scale power equipment: diesel and natural gas generators from 50 kW to multi-megawatt sets, gas turbines and complete plant packages, battery energy storage and transformers. When the unit you need isn't in our inventory, we source it through our network, including equipment that never reaches the open market. We also handle inspection, documentation, decommissioning, rigging and logistics.

Frequently asked questions

How long does it take to get utility power to a new commercial building?

It depends on your utility and whether your load triggers upstream upgrades. In California, the CPUC targets a six-month average for line and service extensions. Circuit and substation upgrades can add two to three years or more, and large loads in constrained markets can wait four to seven years.

Why are transformer lead times so long?

Demand has outrun manufacturing capacity. Utilities, data centers, manufacturers and renewable projects are all ordering at once, while the U.S. depends heavily on imported units and a limited supply of the specialized electrical steel transformers need.

What is bridge power?

Bridge power is temporary or semi-permanent onsite generation that powers a site until permanent utility service is energized. It's usually natural gas or diesel generators, sometimes paired with battery storage.

Can I use a used generator for construction power in California?

Yes, if it meets California's emissions rules for its use and location. Portable diesel units 50 hp and up fall under CARB's portable engine rules, so look for Tier 4 Final or CARB-compliant units and confirm registration or permitting with your local air district.

Is onsite generation more expensive than waiting for the grid?

Per kWh, usually yes, especially on diesel. Compare it against the cost of delay: carrying costs on a finished building, lost rent or revenue, and schedule penalties. For many projects, a few months of bridge power costs less than a year of sitting dark.

Don't let a finished project sit dark

The grid will catch up, but your schedule can't wait for it. Browse our current inventory, send your requirements through PowerMatch, or contact ARC Power Systems at (213) 371-2848 to talk through bridge power, transformers and onsite generation for your project.

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