Saturday, October 25, 2025

US regulators are pushed to connect data centers with grid

October 24, 2025

The U.S. Energy Secretary Chris Wright directed federal energy regulators this week to examine a rule that would speed up the connection between power-hungry, data centers and electric grids.

Wright sent a rule to the Federal Energy Regulatory Commission on Thursday, allowing customers to submit joint, colocated requests for interconnection of load and generation. The Energy Department said that the rule will reduce the study time and cost for improving the grid while also reducing the amount of time it takes to bring additional power online. The rule also forces FERC, which can sometimes take years to review grid projects, to consider whether they could be completed in 60 days.

The U.S. artificial intelligence power demand is increasing for the first two decades. President Donald Trump’s administration is working to increase power capacity, mostly from fossil fuels and nuclear plants and grid access for data centers.

Energy secretaries may direct FERC to consider new rules but they cannot force the independent panel, which is part of the Energy Department, with a 3-2 Republican majority to do so.

Edison Electric Institute (which represents publicly traded electric utilities) said that it supported Wright's efforts, saying that it would strengthen and reduce costs for customers.

Environmentalists criticized the move. Camden Weber, of the environmental group Center for Biological Diversity, said that "pushing FERC to rubber stamp connections in only 60 days while government is shut down and Trump constructs a $300,000,000 White House ballroom" shows how out of touch Trump's administration is with everyday Americans.

Wright also urged FERC consider a new rule that would remove the burdens associated with obtaining preliminary hydroelectric permits.

Malcolm Woolf praised Wright for his decision. It is the responsibility of FERC, Congress, and the Trump Administration to ensure that Federal resource agencies do not unnecessarily hinder hydropower development, but instead encourage its growth in order to meet current challenges.

(source: Reuters)

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