The Federal Energy Regulatory Commission (FERC) today issued sweeping orders requiring the nation's six major grid operators to revise their rules for connecting large customers such as data centers and crypto mines. The directive targets unprecedented energy demand that has strained power supplies in multiple regions.
The orders aim to address concerns that current connection rules have allowed large customers to drive up electric rates, with consumer advocates warning residential ratepayers could be stuck paying the bill. The commission did not provide specific emissions data in its order, but the surge in data center power use has been linked to increased fossil fuel reliance in some regions.
No direct investment or job figures were cited in the order. However, the ruling could reshape how billions of dollars in new data center construction costs are allocated between industrial and residential customers. The commission's action comes as electricity demand from data centers is projected to grow rapidly over the next decade.
The order applies to the six regional transmission organizations (RTOs) and independent system operators (ISOs) that manage about two-thirds of U.S. electricity. The commission did not specify which grid operators face the most immediate impact, though PJM Interconnection and MISO have reported significant load growth from data centers.
Industry groups have argued that data centers bring economic benefits to local communities. The commission's order does not impose a moratorium on new connections but requires rule changes that could slow the pace of new data center hookups in some areas.