FERC orders grid operators to speed connections for AI data centers
The Federal Energy Regulatory Commission on June 18 issued six tailored orders directing the regional grid operators to overhaul how they connect “large loads” — facilities drawing more than 20 megawatts, a category dominated by AI data centers — in an effort to cut the wait for new connections. The orders affect regions serving roughly 200 million Americans across more than 30 states and the District of Columbia, The Hill reported .
Rather than open a conventional rulemaking, which can take years, FERC used “show cause” orders under Section 206 of the Federal Power Act, requiring each operator to justify or revise its current rules. The action fulfills a 2025 request from Energy Secretary Chris Wright to accelerate interconnection for large users. The fast-growing Texas data-center hub is not covered, because its grid operates outside federal jurisdiction.
The move reflects the central bottleneck in the AI buildout: developers can finance and site data centers far faster than the grid can supply firm power, and interconnection queues have become the binding constraint. By pushing operators to revise the rules now, FERC is trying to clear that backlog — while shifting to regulators the contested question of how the cost and reliability burden of those new loads is shared with existing ratepayers.