If you want to plug a new data center into the electrical grid in the US right now, you might be waiting five to seven years. The queue to connect large power-hungry facilities to utility infrastructure has become one of the biggest bottlenecks in the AI boom, and a Texas startup thinks it has a workaround.

TAR, a green energy company, announced a $27 million seed round to develop modular power systems that combine solar energy, wind, battery storage, and limited natural gas backup. The goal: generate nearly continuous on-site power for data centers, effectively sidestepping the grid connection problem entirely.

The grid queue problem, explained

Every new facility that needs serious electricity has to apply for an interconnection with the local utility. That process involves engineering studies, grid upgrades, regulatory approvals, and a seemingly infinite amount of waiting.

Current interconnection queues stretch five to seven years or longer. TAR’s pitch is straightforward: instead of waiting years for the grid, bring the power plant to the data center. Their pilot system targets 10 MW of constant power deployment.