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DOE Urges FERC to Federalize and Fast-Track Data Center Grid Connections

The independent commission will now determine whether to standardize large-load hookups nationwide.

Overview

  • The Energy Department sent FERC a draft proposal seeking federal authority over interconnections for data centers of 20 MW or more, with a request for expedited action.
  • The plan would allow joint, co-located load-and-generation interconnection filings and asks regulators to consider whether some reviews can be completed in 60 days.
  • DOE says the push responds to unprecedented growth in large electric loads from AI and advanced manufacturing, but FERC is not obligated to adopt the rule.
  • Industry and advocacy responses diverged, with the Edison Electric Institute offering guarded support and environmental groups criticizing the timeline, as former FERC chair Mark Christie warned of reliability, cost-shift, and state-authority concerns.
  • Alternative approaches are gaining attention, including off-grid power deals for data centers, with New Hampshire passing a law exempting such projects from certain state regulation.