Federal regulators have directed regional grid operators to expedite connections for large energy consumers, particularly AI data centers, to the aging U.S. electric transmission network. This move is aimed at supporting the surge in electricity demand from these facilities, which can consume as much power as small cities. Energy Secretary Chris Wright emphasized the importance of this step for U.S. competitiveness in the AI sector. The Federal Energy Regulatory Commission (FERC) voted unanimously to ensure timely, orderly grid connections while maintaining state control over retail electric rates. Data centers will cover all grid upgrade costs, though energy supply shortages remain a concern. The six regional grid operators affected serve two-thirds of FERC’s jurisdiction, and faster integration plans are expected soon. Despite some community resistance and regulatory challenges, the tech industry is pushing to overcome power bottlenecks to meet growing data center demands.
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