Federal regulators back Trump’s plan to speed power to energy-hungry AI data centers

Federal regulators under the Federal Energy Regulatory Commission (FERC) have agreed to allow large energy users, including AI data centers, quicker access to the national electric transmission system to meet surging demand for power.
Energy Secretary Chris Wright had urged FERC to act, emphasizing the importance of the U.S. competing with China in the AI sector, a move welcomed by the tech industry but opposed by utilities and grid operators over concerns about loss of local management authority.
Clean energy advocates are apprehensive that this could undermine state-level initiatives aimed at promoting renewable energy usage.
The unanimous FERC vote directed that large power users, particularly AI data centers, are to connect to the transmission system in a timely and efficient manner while keeping rates affordable for consumers. Data centers will assume the full cost for grid upgrades related to their connection.
Data centers face both regional pushback due to concerns about cost increases, pollution, and water consumption, and logistical challenges like permitting delays, which have slowed construction despite rising demand.
Tech giants continue to struggle with power supply bottlenecks and are often met with local resistance, while data centers’ energy usage is expected to grow dramatically, potentially tripling by 2035 and reaching a significant portion of U.S. electricity demand in specific regions like Virginia.

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