WASHINGTON — The Federal Energy Regulatory Commission unanimously voted to direct six regional grid operators to facilitate connections for artificial intelligence data centers and other large power users. The commission's order also requires data centers to cover the full expense of necessary grid upgrades for their interconnection.
Energy Secretary Chris Wright had requested the commission act to help the United States compete with China in the technology sector. The six regional grid operators covered by the directive serve approximately 200 million people, and the commission invited investor-owned utilities managing regional transmission networks to participate voluntarily.
Laura Swett, Federal Energy Regulatory Commission chair, addressed financial concerns related to these interconnections. "I know that Americans across the country are concerned about affordability, and so are we." Swett said. "Many Americans are increasingly concerned about the interconnection of large power loads, and data centers will increase their bills in that stress. As chairman, I am taking extremely seriously the mission that Congress has entrusted us to ensure that rates are reasonable and that Americans pay their fair share or less."
In December 2025, the commission authorized direct electrical connections between data centers and power generation facilities. Technology companies including xAI, Google, Microsoft, Meta, Oracle, OpenAI, and Amazon signed a commitment to either develop or procure new power generation sources for their facilities. The signatory companies also agreed to finance infrastructure upgrades, provide emergency backup generation, and prioritize local hiring during construction.
Data from the Electric Power Research Institute indicates that data centers currently consume approximately 5 percent of the U.S. electricity demand. The institute projects that this electricity consumption could triple by 2035. Data centers currently account for over 25 percent of electricity demand in Virginia, with projections showing this could exceed 40 percent by 2030.
A financial analysis reported that over 60 percent of data center capacity scheduled for 2027 has not broken ground due to permitting and equipment supply chain delays. Energy consultant Rob Gramlich stated that state governments retain authority over retail electricity rates. He also noted that the commission could expand its oversight over large power user connections if state regulators do not establish new rules promptly.
No independent assessment was available for this report.
forum Comments (0)
No comments yet. Be the first to comment.