Federal regulators have agreed to let large energy users, including AI data centers, connect more quickly to the nation’s electric transmission system. This move aims to accommodate surging demand from power-hungry artificial intelligence data centers.

Background

Energy Secretary Chris Wright had urged the Federal Energy Regulatory Commission (FERC) to act in an effort to help the United States better compete with China for superiority in the fast-growing AI sector. The commission’s actions come as a backlash grows against data centers over fears about rising electricity prices and concerns about the massive amounts of energy and water they use.

FERC members voted unanimously to direct six regional grid operators to ensure that AI data centers and other large power users are able to connect to the transmission system in a timely and orderly manner. Data centers would pay the full cost of any grid upgrades needed for their connection, under the commission order.

Impact

The vote comes eight months after Wright asked the independent agency to take more control over ensuring that the vast network of massive computing warehouses needed to power AI are connected quickly to high-voltage transmission lines. Tech giants are scrambling to find enough power for their data centers, with over 4,000 data centers now operating in the U.S. and an additional 3,000 planned or under construction.

Companies such as xAI, Google, Microsoft, Meta, Oracle, OpenAI, and Amazon have signed the Ratepayer Protection Pledge, agreeing to build or buy new sources of power generation for their data centers and cover the expense of infrastructure upgrades. They also committed to making backup generation available to prevent blackouts in times of emergency and to hire locally for their data center build-out.

Original reporting: 40/29 / KHBS (NW Arkansas) — read the source article.