What happened
The Federal Energy Regulatory Commission (FERC) unanimously ordered six major US grid operators on Thursday to fast-track interconnection requests for data centres and other large electricity users. Data centres will bear the costs of these interconnections, and operators must consider alternative transmission technologies. Grid operators now have 30 days to report spare generating capacity and 60 days to justify or revise regional electricity rates, while also accommodating behind-the-meter power solutions. This directive follows an October request from Secretary of Energy Chris Wright, who cited delays threatening US AI competitiveness.
Why it matters
Faster grid access for data centres will not resolve the underlying power generation deficit. Data centre electricity demand is projected to nearly triple by 2035, while wholesale electricity rates have already surged by as much as 267% in some regions over the past five years. This prioritisation of demand-side connections occurs as the Trump administration simultaneously paid Invenergy $765 million to cancel offshore wind leases near California, Maine, and New York, including one capable of 2.4 gigawatts, further constraining future generation capacity.
