FERC orders grid operators to fast-track data center interconnection requests

The Federal Energy Regulatory Commission (FERC) voted unanimously on Thursday to require six major U.S. grid operators to prioritize interconnection requests from data centers and other large electricity users, aiming to reduce delays in connecting new facilities to the transmission system.

Under the orders, grid operators must submit a report within 30 days detailing any spare generating capacity in their regions. Within 60 days, they must also “defend or revise” electricity rates applicable to data centers and similar large loads.

The commission did not specify technologies but directed grid operators to consider “alternative transmission technologies,” which could include solid-state transformers or superconducting transmission lines, though no particular options were named.

FERC also encouraged grid operators to be more accommodating to behind-the-meter power solutions for data centers, a move reflecting growing reliance on on-site generation amid grid constraints.

The directive comes as electricity demand from data centers is projected to nearly triple through 2035, straining grid operators that have operated under near-zero demand growth for decades.

FERC’s action follows a call from U.S. Secretary of Energy Chris Wright in October 2025, who warned that delays in data center grid connections threatened U.S. competitiveness in artificial intelligence.

Despite the fast-tracking of data center interconnections, FERC did not address the broader shortage of generating capacity that has contributed to delays for new power plants and driven wholesale electricity rates up as much as 267% compared with five years ago, according to Bloomberg.

Grid operators such as PJM, the largest in the U.S., have faced significant strain, with major utilities threatening to withdraw from regions where connection delays persist.