Regulators Streamline Grid Interconnection Queue for U.S. Data Centers

Federal regulators on Thursday directed six regional grid operators to connect large electricity users, including AI data centers, to the transmission system more quickly. The unanimous vote by the Federal Energy Regulatory Commission requires the operators serving about 200 million Americans to ensure timely and orderly connections.

Data centers must cover the full cost of any grid upgrades needed for their hookups.

Background on the request Energy Secretary Chris Wright had urged the commission eight months earlier to take greater control over the process. The commission also invited utilities that manage regional transmission systems to participate.

Industry and community reactions Tech companies and data center developers welcomed the faster connections. Utilities, states and regional grid operators expressed concern that the plan would reduce their authority to manage the process. Clean energy advocates said the commission should support state efforts to require renewable energy rather than undermine them.

“I know that Americans across the country are concerned about affordability, and so are we.”

data center growth More than 4,000 data centers now operate in the United States, with an additional 3,000 planned or under construction. Some facilities consume more energy than a small city. The commission's order does not address tightening energy supplies that are driving up electricity bills in some regions and prompting warnings of possible blackouts.