Power for energy-guzzling AI data centers is getting fast-tracked thanks to federal regulators

Federal regulators ordered regional grid operators on Thursday to expedite the connection of large energy users, including artificial intelligence data centers, to the national electric transmission system. This directive from the Federal Energy Regulatory Commission (FERC) aims to address the rapidly increasing demand for electricity driven by power-intensive AI infrastructure and to bolster U.S. competitiveness in the AI sector, as advocated by Energy Secretary Chris Wright. Tech companies and data center developers have expressed support for the faster connection process, which will benefit facilities consuming electricity equivalent to small cities. While utilities, states, and grid operators had concerns about losing control over the connection process, FERC clarified that the order preserves states' authority over retail electric rates and service terms. The commission's unanimous vote, led by Chair Laura Swett, seeks to modernize the electricity market, ensure reliable service, and prevent ratepayers from bearing the costs of connecting major energy consumers. This action occurs amidst growing public concern regarding the substantial energy and water consumption of data centers, as well as issues related to pollution, water scarcity, and land use.