FERC orders grid operators to speed data center connections

In a unanimous decision on Thursday, June 18, 2026, the Federal Energy Regulatory Commission ordered the nation's major electric grid operators to fast-track the process for connecting data centers to the power grid. The directive aims to accelerate the deployment of artificial intelligence and cloud computing infrastructure by reducing interconnection delays that can currently stretch for years.

The commission instructed six regional grid operators to demonstrate that data centers can connect to the transmission system in a timely and orderly manner. Under the new orders, data centers will be responsible for paying the costs of their own interconnection and any necessary grid upgrades. Grid operators have 30 days to submit reports detailing available spare generating capacity and 60 days to either justify or revise their regional electricity rates to address large-load customers.

FERC Chairman Laura Swett called the vote a historic action to modernize electricity markets and protect consumers. She stated the commission is setting the stage for a resilient grid that safeguards consumers while facilitating necessary development. The commission also directed operators to be more...