Energy Secretary Directs FERC to Speed Data Center Grid Connections

U.S. Energy Secretary Chris Wright directed the Federal Energy Regulatory Commission (FERC) on October 23, 2025, to initiate a rulemaking process to accelerate the interconnection of large energy loads, specifically targeting AI data centers and domestic manufacturing facilities. Invoking Section 403 of the Department of Energy Organization Act, Wright issued an Advance Notice of Proposed Rulemaking (ANOPR) for facilities greater than 20 megawatts, aiming to ensure timely and non-discriminatory grid access.

The proposal includes 14 guiding principles, such as allowing joint interconnection requests for co-located load and generation facilities to reduce study times and costs. Wright urged FERC to evaluate whether grid project reviews could be completed within 60 days and mandated that interconnecting loads pay 100% of network upgrade costs. Additionally, the Department of Energy proposed removing third-party veto rights over preliminary hydroelectric power permits to further increase power capacity.

FERC responded on October 28 by establishing Docket No. RM26-4-000 and inviting public comments until November 14, 2025, with a request for final action by April 30, 2026. The initiative is supported by industry groups like the Edison Electric Institute and the National Hydropower Association. However, it faces criticism from the Center for Biological Diversity and former FERC Chairman Mark C. Christie, who described the move as an unprecedented expansion of federal control over functions historically managed by state retail regulators.