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Grid operators ordered to speed electricity to AI data centers

WASHINGTON — Federal regulators on Thursday ordered regional grid operators to help large energy users connect more quickly to the nation’s inefficient and aging electric transmission system, a step they said is needed to accommodate surging demand from power-hungry artificial intelligence data centers.

Energy Secretary Chris Wright had urged the Federal Energy Regulatory Commission to act in an effort to help the United States better compete with China for superiority in the fast-growing AI sector.

Tech companies and data center developers welcomed the chance to connect faster to the country’s power supply for the biggest energy users ever built in the United States, including some that consume more electricity than a small city.

Utilities, states and regional grid operators had worried that the Republican administration’s plan would remove their authority to manage the process, but FERC said the order leaves states in control of retail electric rates, terms and conditions. Clean energy advocates have urged regulators not to undermine state-level efforts to require the use of renewable energies.

The commission’s actions come as a backlash grows against data centers over concerns about the massive amounts of energy and water they use and fears about noise and air pollution, water shortages and a loss of open space or farmland.

FERC members voted unanimously to direct six regional grid operators to ensure that AI data centers and other large power users are “able to connect to the transmission system in a timely and orderly manner.”

Laura Swett, an appointee of President Donald Trump who chairs the commission, called the vote “historic” and said it would push the country’s electricity market into the future while respecting states’ rights, protecting reliable electric service and shielding ratepayers from shouldering the costs of connecting big power users to the grid.

“I know that Americans across the country are concerned about affordability, and so are we,” Swett said, referring to the five-member commission.

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