FERC Directs Major Overhaul of Power Grid to Accelerate AI Data Centers
In a significant regulatory development, the U.S. Federal Energy Regulatory Commission (FERC) has issued comprehensive orders to the nation’s six major regional grid operators. The directive is to expedite grid connections for AI data centers and other large-scale power consumers, or provide a justification for not doing so.
The unanimous vote, issued on June 18, 2026, addresses a growing bottleneck in America’s AI infrastructure race: connecting power-intensive data centers to an aging, overburdened electric grid. FERC provided six regional transmission organizations — including PJM Interconnection, the Midcontinent Independent System Operator, the California ISO, ISO New England, the New York ISO, and the Southwest Power Pool — a 60-day deadline to either defend their current interconnection rules or propose reforms. These operators collectively serve 200 million Americans across over 30 states.
FERC Chair Laura Swett, a Trump appointee, hailed the action as historic, asserting it would “propel the country’s electricity market into the future.” She further emphasized that addressing the AI power crisis is “the biggest priority our country is facing at the moment.” The orders are in alignment with President Trump’s “AI Action Plan” and follow a direct request from Energy Secretary Chris Wright last year to accelerate AI data center grid access. Grid operators are also required to submit resource adequacy reports within 30 days, detailing their plans to ensure sufficient power for both existing customers and future large-load users.
This move is particularly significant as tech giants like Microsoft — which has added over 4 gigawatts of capacity in the past 18 months — are racing to power a new generation of AI infrastructure that, in some instances, consumes more electricity than a small city.
Source: Gizmodo