The Federal Energy Regulatory Commission has ordered regional grid operators to explain or revise the rules they use to connect large power users such as data centers, a move aimed at speeding up hookups without straining the grid or raising costs for households.
The agency said Thursday that current processes were not designed for the pace of demand created by artificial intelligence infrastructure and other very large electricity users. Six regional grids under FERC’s authority, which do not include Texas, have 60 days to respond to draft show-cause orders and either defend their existing rules or propose changes.
Data centers are driving electricity consumption to record levels across the United States, and in some regions their needs are outpacing available supply. Regulators and utilities have been searching for ways to accommodate new projects while avoiding higher bills and the risk of outages.
FERC Chair Laura Swett called the issue the country’s top energy priority. Speaking at a news conference, she said the agency wants to move quickly because the United States is competing globally to build and deploy AI systems.
“This is a race against time,” Swett said.
The commission’s orders focus on five areas, including clearer procedures for connecting very large users and rules for assigning the cost of new infrastructure needed to serve them. FERC said it wants operators to determine whether large customers should bear more of the expense for facilities built to meet their demand.
The agency also encouraged the development of frameworks that would let large users bring their own power supply, including through on-site generation. It urged grid operators to consider advanced technologies that could make existing infrastructure more efficient.
The directive follows last year’s push from U.S. Energy Secretary Chris Wright to speed the connection of data centers as part of the broader effort to strengthen U.S. leadership in artificial intelligence.
Industry groups and developers largely welcomed the move. Robert Montejo, a partner at Duane Morris who represents data center developers and power companies, said the electric grid and earlier policies were not built for the scale of demand now arriving from AI-related projects.
Clean energy advocates also expressed support for the proposal, saying it could improve reliability and transparency while protecting household ratepayers. The Sierra Club said the orders pointed toward a workable path for “responsible large load interconnection policies” that balance affordability with grid stability.
Alongside the grid orders, FERC said it will no longer automatically factor cumulative environmental impacts into its rulemaking under the National Environmental Policy Act. Swett said the agency did not want to spend time and money on analysis that is not required by law.
The changes signal a broader effort by the commission to streamline federal oversight of large energy users and accelerate infrastructure decisions as data center development continues to expand.
For utilities and grid operators, the next two months will determine whether the existing playbook can hold up under the pressure of AI-driven electricity growth, or whether the country’s power markets need a major reset.