The Grid Can’t Keep Up. Institutional Capital Is Moving Behind the Meter.
Read the new Tortoise Capital whitepaper on behind-the-meter energy infrastructure: the structural shift, the real-world proof, and portfolio implications.
Access the Whitepaper
Electricity demand is accelerating: driven by AI, digital infrastructure, industrial electrification, and global population growth.
11% by 2030
Data centers alone: >11% of U.S. power consumption by 2030.1
2X by 2050
IEA: global electricity demand to double by 2050.2
5 Years
Average delay for large grid connections.3
The legacy grid wasn’t built for this. Grid connection wait times for large industrial loads now average nearly five years. Thus, a new model is emerging: power generated at the fence line, on private wire, behind the meter ⭢ bypassing the interconnection queue entirely.
This whitepaper examines that structural shift: what is driving it, what it means for energy infrastructure, and how institutional allocators can position for a theme with contracted cash flows, long-duration assets, and investment-grade counterparties.
Inside the Whitepaper
- Why electricity is the new oil
- What this means for energy investing
- How energy demand is decentralizing
- Why BTM is becoming the preferred power model for hyperscalers and industry
- The essential role of natural gas as BTM enabler
- Energy addition beyond energy transition
Asset Allocation Perspectives
| Contracted cash flows | Inflation sensitivity | Duration matching | Portfolio implementation |
The Proof: Four Case Studies
Williams (WMB) + Meta (META) — Total Solution
Two 200-MW natural gas plants built on Meta’s Prometheus AI supercluster campus in Ohio. No utility. No interconnection queue. Power at the fence line. Online Q3 2026.
Energy Transfer (ET) + CloudBurst — Fuel Backbone
10-year firm gas supply agreement via the Oasis Pipeline. Power for 1.2 GW of behind-the-meter generation at an AI campus in San Marcos, Texas. Midstream infrastructure enters the AI power stack.
Dow (DOW) + X-energy — Nuclear at the Fence Line
Small modular reactors at Dow’s Seadrift chemical complex, providing electricity and process steam directly to the facility. A 125-year-old industrial giant makes a generational energy decision, backed by a $50M DOE grant.
State of Oklahoma — Public Policy as Prime Mover
Senate Bill 480: passed unanimously in May 2025. Authorizes private businesses to develop and operate their own onsite power systems. Oklahoma leads the way. First state to codify BTM as a first-class energy path.
BTM: Behind the Meter
The Next Frontier in Energy Infrastructure.
- Exposure to U.S. energy producers, utilities, and midstream infrastructure
- Targets sectors supporting electrification and energy storage trends
- Covered call strategy to enhance yield and manage volatility
- Actively managed by a team with decades of energy sector experience
ETF structure with daily liquidity and 1099 tax reporting
1A. Shehabi et al., United States Data Center Energy Usage Report, Lawrence Berkeley National Laboratory, 2024.
https://emp.lbl.gov/sites/default/files/2024_united_states_data_center_energy_usage_report.pdf
Note: projects 6.7%–12% by 2030; >11% reflects the high-growth scenario)
B. McKinsey & Company, Global Energy Perspective 2024.
https://www.mckinsey.com/industries/energy-and-materials/our-insights/global-energy-perspective
Note: also projects up to 12% by 2030
C. Electric Power Research Institute, Data Center Energy Consumption Forecast, 2025.
https://www.epri.com/research/products/000000003002028905
Note: projects 9%–17% by 2030; midpoint well above 11
2International Energy Agency, World Energy Outlook 2024, October 2024.
https://www.iea.org/reports/world-energy-outlook-2024
Note: The 2x figure reflects the IEA’s Announced Pledges Scenario (APS). The Stated Policies Scenario (STEPS) projects ~75% higher.
3Rand et al., Queued Up: 2025 Edition, Characteristics of Power Plants Seeking Transmission Interconnection As of the End of 2024, Lawrence Berkeley National Laboratory, May 2025.
https://emp.lbl.gov/queues
BCG, Mind the Queue: Connection Reform for the Electricity Grid, September 2025.
https://www.bcg.com/publications/2025/mind-the-queue-connection-reform-for-the-electricity-grid
Note: documents median of 5 years for projects built in 2023, up from <2 years for 2000–2007.
Important Information
The information provided in this material reflects the views and opinions of TCA for a specific point in time. The views and opinions are subject to change based on market or other conditions. This material contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical fact, included herein are “forward-looking statements.” Although Tortoise Capital believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual events could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this publication. Tortoise Capital does not assume a duty to update these forward-looking statements. This material should not be relied upon as investment or tax advice and is not intended to predict or depict performance of any investment. Companies mentioned are being shown for informational purposes only. This material is provided for information only and shall not constitute an offer to sell or a solicitation of an offer to buy any securities. Investing involves risk, including possible loss of principal.
Past performance is no guarantee of future results.
