Federal regulators back Trump's plan to speed power to energy-hungry AI data centers
Federal regulators have approved a plan to expedite the connection of large energy users, including AI data centers, to the national electricity grid. This aims to meet the surging demand from AI and help the U.S. compete globally, but faces concerns from utilities and clean energy advocates. The commission mandates data centers cover the full cost of grid upgrades, though broader issues of energy supply and community opposition remain.
The Federal Energy Regulatory Commission (FERC) has unanimously approved a measure to accelerate the connection of large power users, specifically artificial intelligence (AI) data centers, to the national electric transmission system. Energy Secretary Chris Wright advocated for this action to bolster U.S. competitiveness in the AI sector against China, a move welcomed by tech companies and data center developers seeking faster grid access. The commission's chair, Laura Swett, hailed the decision as historic, emphasizing timely connections while protecting ratepayers from the costs of grid upgrades, which data centers will now bear in full.
However, the plan has drawn criticism from utilities, states, and regional grid operators, who are concerned about the erosion of their authority over the interconnection process. Clean energy advocates also worry the directive might undermine state-level initiatives promoting renewable energy. The FERC's decision comes amidst increasing public backlash against data centers, driven by fears of rising electricity prices, substantial energy and water consumption, and their environmental impact on communities.
Despite the federal action, challenges persist, including tightening energy supplies contributing to higher electricity bills and potential blackouts, as data center construction outpaces new power plant development. Communities nationwide are also voicing widespread opposition, citing concerns about pollution, water use, and the loss of open spaces. Tech giants like xAI, Google, Microsoft, Meta, Oracle, OpenAI, and Amazon have committed to the "Ratepayer Protection Pledge," agreeing to fund new power generation and infrastructure upgrades, and to hire locally, as data centers currently account for about 5% of U.S. electricity demand, projected to triple by 2035.