K&M Advisors recently attended Data Center World Power 2026 in Dallas, Texas. Organized by AFCOM, the conference brought together data center developers, utilities, independent power producers, and equipment suppliers, with a strong focus on behind-the-meter, gas-fired generation.

With grid interconnection timelines reaching five years or more in many markets, on-site gas generation has become a mainstream strategy for powering AI data centers. Because the value of energizing quickly is so high, developers are willing to accept higher costs to bring generation capacity online sooner, often using on-site generation as bridge power until a grid connection is available.

Discussions highlighted that delivering these projects requires much more than a turbine order and a nearby pipeline. Financing an entire power plant up front remains a key hurdle, driving growth in independent power producers and energy-as-a-service providers that offer long-term contracts with firm capacity and uptime commitments. Air permitting is also part of the critical path and varies widely by state, leading developers to select jurisdictions carefully and, in some cases, adopt lower-emission technologies such as fuel cells. Securing firm gas delivery, not simply proximity to a pipeline, is equally critical.

On the equipment side, long gas turbine lead times have shifted demand toward reciprocating engines, while transformers, switchgear, and other balance-of-plant equipment are becoming a growing bottleneck. Skilled labor shortages and long-term operations and maintenance also require early planning. Operating without the grid adds technical complexity, as rapid AI load swings and the need for on-site stability are driving the pairing of generation with battery storage and other stabilizing technologies.

The most resilient strategies treat on-site generation as part of a broader energy plan that includes a pathway to grid interconnection, with the plant later serving as backup or supplemental supply.

These insights closely reflect K&M Advisors’ ongoing work with data center clients on behind-the-meter, gas-fired power solutions, including defining functional requirements, running competitive

procurement processes to select independent power producers, and structuring and negotiating power purchase agreements.

K&M Advisors looks forward to applying its extensive power generation experience to continue to help data center clients develop reliable, timely, and cost-effective on-site gas-fired generation for large-scale digital infrastructure.