US Officials Move to Prevent Data Centers from Raising Utility Rates

The Federal Energy Regulatory Commission (FERC) and several state governments have launched a coordinated effort to accelerate the integration of AI data centers into the power grid while insulating residential ratepayers from the costs. On June 18, 2026, FERC voted unanimously to speed up connections for large energy users to improve U.S. competitiveness in AI. Under this order, data centers must pay the full cost of necessary grid upgrades.

In Texas, Governor Greg Abbott directed state regulators to ensure energy-intensive facilities fund their own infrastructure, such as substations and power lines. The Public Utility Commission of Texas subsequently approved a new batch-based vetting process developed by the Electric Reliability Council of Texas (ERCOT) to replace an overwhelmed one-at-a-time system. This new approach prioritizes mature projects with secured land and financing over speculative requests.

Similar legislative actions are occurring at other levels of government. In Washington, the House Energy and Commerce Committee introduced the Ratepayer Protection Act to align grid upgrade costs with demand. Meanwhile, the Delaware House of Representatives passed two bills requiring large energy users to utilize separate utility rate structures and secure their own power supplies. These measures respond to a surge in energy demand driven by the AI boom, which officials warn could otherwise cause grid instability and higher costs for families and small businesses.