Federal regulators on Thursday ordered regional grid operators to help large energy users, including artificial intelligence data centers, connect more quickly to the nation’s electric transmission system. The move aims to accommodate surging demand from power-hungry AI 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 concerns about the massive amounts of energy and water they use and fears about noise and air pollution, water shortages, and a loss of open space or farmland.

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. The order leaves states in control of retail electric rates, terms, and conditions.

Response and Implications

Tech companies and data center developers welcomed the chance to connect faster to the country’s power supply. However, utilities, states, and regional grid operators had worried that the plan would remove their authority to manage the process. Clean energy advocates have urged regulators not to undermine state-level efforts to require the use of renewable energies.

The commission’s order requires data centers to pay the full cost of any grid upgrades needed for their connection. The order can do little to address the tightening energy supplies that are driving up electricity bills in some areas and raising warnings of blackouts as the construction of data centers outpaces the speed of new power plants coming online to serve them.

Original reporting: Texarkana Gazette — read the source article.