The Federal Energy Regulatory Commission (FERC) has mandated that grid operators prioritize interconnection requests from data centers and other large electricity users. The move comes as data center power consumption is expected to nearly triple by 2035.
Under the new orders, six major grid operators must ensure data centers can connect to the transmission system in a timely manner, with costs borne by the requesting entities. FERC also opened the door for alternative transmission technologies, potentially including solid-state transformers or superconducting lines.
The commission’s directives aim to address delays that have plagued both data center and power plant grid connections, as new plants struggle to connect too. Wholesaler electricity rates are already up by 267% in some regions compared to five years ago, thanks to soaring demand from tech giants.
Grid operators must now report on generating capacity within 30 days and adjust regional electricity rates if necessary. The move is seen as a significant step towards addressing the growing strain on grid infrastructure posed by AI and data centers, which have become central to economic competitiveness in recent years.
