FERC fast tracks AI data center grid connections

The Federal Energy Regulatory Commission (FERC) has ordered grid operators to expedite interconnection requests for data centers and other large electricity consumers. This move aims to address the rapidly growing demand for power driven by AI, which is projected to nearly triple by 2035. While data centers will bear the costs, the directive also encourages consideration of alternative transmission technologies. Grid operators must now report on available capacity and revise electricity rates within 30 and 60 days, respectively. This initiative seeks to prevent delays from undermining U.S. competitiveness in AI development, despite ongoing challenges with power plant interconnections and soaring wholesale electricity prices.