Uncle Sam’s new power plan will plug AI farms into the grid faster
Summary
US Energy Secretary Chris Wright has asked the Federal Energy Regulatory Commission (FERC) to adopt rules that will speed the interconnection of large electricity loads — notably AI data centres — to the interstate transmission system. The DOE proposes treating large loads (>20 MW) more like generators in the connection process, introducing standardised study deposits, readiness requirements and withdrawal penalties to deter speculative projects. Wright also asked FERC to consider tight deadlines for studies (including an expedited 60‑day option for curtailable loads) and to remove third‑party opposition as a basis to deny preliminary hydroelectric permits. The move follows growing concern about long connection wait times (reports cite waits of up to seven years) and a Deloitte estimate that US data centre power demand could surge dramatically by 2035. The DOE is simultaneously pushing projects to speed new generation online and exploring co‑location of generation with data centre sites.
Key Points
- Secretary Wright directed FERC to accelerate connection reviews for large loads and to consider deadlines such as a 60‑day expedited study for curtailable applicants.
- Proposed reforms target new loads greater than 20 MW and would apply standardized deposits, readiness rules and withdrawal penalties to reduce speculative applications.
- Applicants that agree to be curtailable (able to reduce load) could get faster treatment, helping grid stability.
- DOE argues that large‑load interconnection should fall within FERC’s jurisdiction, aligning load rules with those for generators.
- The reforms aim to tackle multi‑year delays that currently slow data centre and generation projects.
- Wright also asked FERC to clarify that third‑party opposition should not automatically block preliminary hydro permits.
- The DOE is already testing advanced reactors and identifying federal sites for co‑location of data centres and generation to speed capacity onto the grid.
Why should I read this
Because this could change how fast big AI data centres get hooked up to power — and that affects everyone from grid planners and data centre operators to investors and local communities. The DOE wants to shave years off connection times, favour curtailable customers and push new generation live sooner. Expect faster builds, new grid stress points and more on‑site power projects. We read it so you don’t have to — but if you care about energy, infrastructure or AI scale‑up, you should.