Federal regulators order grid operators to speed power to energy-hungry
AI data centers
[June 19, 2026] By
MATTHEW DALY and MARC LEVY
WASHINGTON (AP) — Federal regulators on Thursday ordered regional grid
operators to help large energy users connect more quickly to the
nation’s inefficient and aging electric transmission system, a step they
said is needed to accommodate surging demand from power-hungry
artificial intelligence data centers.
Energy Secretary Chris Wright had urged the Federal Energy Regulatory
Commission to act in an effort to help the United States better compete
with China for superiority in the fast-growing AI sector.
Tech companies and data center developers welcomed the chance to connect
faster to the country’s power supply for the biggest energy users ever
built in the United States, including some that consume more electricity
than a small city.
Utilities, states and regional grid operators had worried that the
Republican administration’s plan would remove their authority to manage
the process, but FERC said the order leaves states in control of retail
electric rates, terms and conditions. Clean energy advocates have urged
regulators not to undermine state-level efforts to require the use of
renewable energies.
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.
Unanimous vote and affordability
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.”
Laura Swett, an appointee of President Donald Trump who chairs the
commission, called the vote “historic” and said it would push the
country’s electricity market into the future while respecting states’
rights, protecting reliable electric service and shielding ratepayers
from shouldering the costs of connecting big power users to the grid.
“I know that Americans across the country are concerned about
affordability, and so are we,” Swett said, referring to the five-member
commission. As chair, “I am taking extremely seriously the mission that
Congress has entrusted us to ensure that rates are reasonable,” she
said.
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.
Wright hailed the commission's action, saying it would "remove barriers,
accelerate development and ensure America has the affordable, reliable
and secure energy needed to power a new era of prosperity."
Data centers would pay the full cost of any grid upgrades needed for
their connection, under the commission order. But that 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.
Robert Montejo, a lawyer who represents data centers, said the most
important message from FERC’s action is that AI “has fundamentally
changed the electricity landscape. The grid and prior policy were not
built for the pace and scale of demand we’re seeing from AI
infrastructure, and FERC is signaling that standing still is no longer
an option.”
The six regional grid operators under the order serve 200 million
Americans, or two-thirds of FERC’s jurisdiction. FERC, meanwhile,
invited utilities that handle their regional transmission systems to
also participate and analysts said the agency could eventually pressure
them, too.
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Energy Secretary Chris Wright speaks during an event, May 4, 2026,
in the East Room at the White House in Washington. (AP Photo/Mark
Schiefelbein, File)
 A search for power
Tech giants are scrambling to find enough power for their data
centers and report that, in some places, it will take years to
connect to the electric grid.
The Edison Electric Institute, which represents investor-owned
electric utilities, said FERC’s order builds on regional and state
processes already underway while “supporting flexibility and
innovation.”
Besides power bottlenecks, the tech industry is running into
widespread opposition from communities where residents don’t want to
live next to or near a data center.
More than 4,000 data centers now operate in the U.S., according to
one estimate, with an additional 3,000 planned or under
construction.
Trump has tried to deflect public concerns about AI, seeing the
fast-evolving technology as crucial for the U.S. to attract foreign
investment and maintain its economic and military prowess. He signed
an executive order this month establishing a framework for the
federal government to vet the national security risks of the most
advanced AI systems for up to a month before their public release.
In December, FERC took an earlier step to help data center operators
get electricity quickly, voting to allow tech companies to
effectively plug a data center directly into a power plant and
Thursday’s order sought to ensure that option is accessible around
the country.
Power demands from data centers
FERC told grid operators to respond within 30 days on how they will
ensure there is adequate power supplies for new and future data
centers, and within 60 days on plans to integrate large power users
in line with the new guidelines. Swett told reporters after the
meeting that she hoped faster connection processes are in effect in
“as little time as possible.” She didn't set an exact timeline.
Jeff Dennis, executive director of the Electricity Customer
Alliance, said FERC’s order is responsive in particular to big power
users and state regulators.
Tech giants are confronting unclear rules to connect data centers to
high-voltage transmission systems, while states need more clarity on
who should bear the cost of regional transmission projects approved
at the federal level, he said.
Rob Gramlich, a Washington-based energy consultant, said states
should quickly develop rules to accommodate large power users and
prevent cost shifts to residential and business customers. FERC
could assert broader jurisdiction over interconnection issues if
states don’t act quickly, he said.
Data from the Electric Power Research Institute shows that data
centers now account for about 5% of U.S. electricity demand, but
could triple by 2035.
Tech companies have continued to raise their spending on building
and equipping data centers, but there is evidence that construction
is lagging and projects are hitting roadblocks, including permitting
delays, growing local opposition or bottlenecks around gas turbines,
transformers and skilled labor.
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Levy reported from Harrisburg, Pa.
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