AI data centers just got a government-mandated fast lane to the grid
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FERC has unanimously ordered six major U.S. grid operators to fast-track interconnection requests from data centers and other large electricity users, requiring them to report available generating capacity within 30 days and defend or revise electricity rates within 60 days. Data centers will bear interconnection costs. The orders also open doors for alternative transmission technologies like solid-state transformers and superconducting lines. However, FERC did not address the underlying shortage of generating capacity, which remains a critical bottleneck — grid connection requests already exceed total existing plant capacity. Electricity demand from data centers is projected to nearly triple by 2035, and wholesale electricity prices have surged up to 267% over five years. Separately, the Trump administration paid $765 million to cancel offshore wind leases, with the developer redirecting funds to natural gas and geothermal projects, bringing total spending to scuttle offshore wind to $2.6 billion.
