Energy policy and grid modernization accelerate as FERC orders six regional grid operators to streamline interconnections for AI-driven data centers, aiming to curb delays while safeguarding ratepayers.

Data centers now use about 5% of U.S. electricity and could triple by 2035, with regional impacts like Virginia potentially consuming a large share of demand by the end of the decade.

Under the new rules, data centers and other large loads would bear the full cost of necessary grid upgrades, even as the broader energy-supply tightness and new power-plant construction pace remain unresolved.

FERC mandated clear timelines: grid operators must outline how they will ensure adequate power within 30 days and provide integration plans within 60 days, with fuller implementation details to follow.

Officials conceded that a one-size-fits-all approach won’t work due to regional differences in grid operation, market design, and geography.

The six affected grid operators—PJM, MISO, SPP, California ISO, ISO New England, and New York ISO—are described as the grid system’s air traffic controllers.

The orders open room for alternative transmission technologies, potentially including solid-state transformers and superconducting lines, though specific technologies aren’t named.

The objective is to speed interconnections for large-load customers while preventing cost-shifting onto residential ratepayers and increasing transparency in how tariffs are set.

States and regional bodies still must implement compliant frameworks, with some states already moving on related protections, even as FERC provides federal guidance.

Grid operators are asked to map faster connection paths and regional transmission improvements while addressing reliability concerns and potential market effects.

Industry and environmental groups offer nuanced views: some praise progress, others warn against shortcomings or call for stronger federal standardization.

Past reliability incidents, including 2023-24 Virginia and Texas events, are cited to justify the push for more robust interconnection rules.