Behind-the-meter solutions are rapidly reshaping the financial landscape of the data center and energy markets as AI-driven demand for power soars. With the global data center market set to grow 8-10% annually and U.S. data centers expected to consume up to 12% of the nation’s electricity by 2028, traditional grid infrastructure simply can’t keep up with the pace or scale of expansion. This supply-demand mismatch is creating both risks and opportunities for investors, with more than $500 billion in data center infrastructure investment needed in the U.S. alone by the end of the decade.
As a result, data center operators are increasingly turning to behind-the-meter solutions—generating electricity on-site, often from natural gas or renewables—to secure reliable, cost-effective power and bypass grid bottlenecks85. This shift is not just about operational efficiency; it’s a direct response to market realities, where grid congestion and multi-year lead times for new connections can delay high-value projects and erode returns. Behind-the-meter setups allow data centers to control their energy costs, lock in long-term pricing through power purchase agreements, and tap into tax incentives, all of which can boost margins and make these facilities more attractive to investors.
The financial implications are significant: the ability to guarantee power supply and manage energy expenses gives operators a competitive edge in a market where even a single day of downtime can mean millions in lost revenue. Meanwhile, the commercial segment of the behind-the-meter market is expanding rapidly, fueled by the explosive growth of IT and data center sectors, and investors are taking notice as these projects become premium assets in the digital economy. With the global push for sustainability and the urgent need to optimize capital deployment, behind-the-meter solutions are emerging as a crucial lever for both profitability and resilience in the fast-evolving world of AI infrastructure.