FERC Rejects Amazon's Data Center Deal Over Grid Concerns

The decision highlights potential impacts on consumer power bills and grid reliability from co-locating data centers at power plants.

The Federal Energy Regulatory Commission (FERC) rejected an amended interconnection agreement for an Amazon data center at a Pennsylvania nuclear plant.
Concerns were raised about the potential for increased power bills and reliability issues due to the diversion of electricity from the regional grid.
The co-location model allows data centers to quickly access large amounts of electricity, crucial for technologies like AI, but raises regulatory and infrastructure questions.
FERC's decision could set a precedent for future agreements between data centers and power plants, affecting how costs and responsibilities are managed.
FERC Chairman Willie Phillips expressed dissent, citing the importance of AI centers to national security and economic growth.