US energy regulator orders faster grid hookups for data centers

In short: The Federal Energy Regulatory Commission ordered major grid operators to speed up how quickly data centers can connect to the US power grid.

What happened

The Federal Energy Regulatory Commission, or FERC (a US agency that oversees parts of the electricity system), told six large grid operators to fast track “interconnection” requests from data centers and other big electricity users.

An interconnection is the approval process for plugging a new customer into the high voltage transmission system, like getting a new on ramp onto a busy highway. Under FERC’s orders, grid operators must show they can connect data centers “in a timely and orderly manner,” and data centers must pay the costs tied to their connection. The commissioners approved the orders unanimously.

FERC also told grid operators to consider “alternative transmission technologies,” which can mean newer hardware used to move electricity more efficiently. The agency did not name specific options. Grid operators have 30 days to report how much spare power generation they have, if any, and 60 days to defend or revise electricity rates in their regions.

Why it matters

Data centers, including those used to train and run AI systems, use a lot of electricity. Demand from data centers is expected to nearly triple by 2035, and delays in connecting both data centers and new power plants have created long backlogs. A faster line for data centers may help some projects start sooner, but it does not fix a basic problem: in many places, there may not be enough electricity available, which can push power prices higher for everyone.

Source: TechCrunch AI