FERC’s moves follows a call last year from US Energy Secretary Chris Wright for expedited reviews for data-center grid connections and a broader framework for accelerating access to power supplies.

The data center buildout presents both opportunity and risk: Technology companies could help finance grid upgrades, but their power needs are arriving faster than the system can adapt. Data centers can add the electricity demand of a small city within a few years, forcing grid operators to meet large new loads without increasing the risk of shortages or blackouts. While various US grids have attempted to address concerns over ensuring data centers are connected with electricity generation, while keeping costs in check, the rollout of such policies have been inconsistent.

That mismatch is something FERC is now trying to rectify, though it stopped short of a blanket rule for the whole country. Swett said it was now up to state legislators to ensure that costs are allocated evenly. This approach provides flexibility to grid operators to address their region-specific conditions, New York Independent System Operator spokesman Kevin Lanahan said in an email.

“We’re out of the wild west era of data center development,” said Robert Montejo, a partner at law firm Duane Morris LLP. “This order may be remembered less for its technical reforms and more for recognizing that large-load interconnection is now a core political, planning and economic issue.”

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