
Behind-The-Meter
Onsite data centre power bypassing the grid meter; now taxed by Virginia and curtailed by DOE.
Last refreshed: 28 June 2026 · Appears in 1 active topic
Does behind-the-meter generation help data centres avoid climate accountability as well as grid queues?
Timeline for behind-the-meter
Virginia taxes power behind the meter
Data Centres: Boom and BacklashMentioned in: Pure DC's 110 MW Dublin microgrid skips queue
Data Centres: Boom and BacklashxAI wins 41 gas turbines for Colossus
Data Centres: Boom and BacklashGE Vernova gas backlog hits 80 GW into 2029
Data Centres: Boom and BacklashWhat is behind-the-meter generation for data centres?
How big are behind-the-meter data centre installations?
What is behind-the-meter power generation for data centres?
Background
behind-the-meter (BTM) generation refers to electricity generation installed at a facility that feeds power directly to on-site loads without flowing through the public electricity grid or a utility meter. For data centres, BTM has become the primary strategy for bypassing grid-connection queues that stretch to three years or more in constrained markets.
BTM data centre deployments range from natural gas turbines (xAI Colossus, 1.2 GW; Meta El Paso, 366 MW) to renewable microgrids (Pure DC Dublin, 110 MW). The common characteristic is that none of the power passes through a utility connection point, avoiding queue wait times and grid-related regulatory requirements.
BTM is distinct from grid-connected backup generation: in BTM architecture, onsite capacity is the primary power source, not a fallback. Virginia passed a $0.011 per kWh consumption tax on 22 June 2026 covering both utility-supplied and self-generated BTM power, capped at $600m per year and sunsetting 1 July 2028, the first US levy to reach past the utility meter. The Department of Energy separately issued two Section 202(c) curtailment orders against BTM generation in PJM territory in 2026, confirming federal oversight of the sector is active and expanding.