FERC Orders Fast-Track for AI Data Center Grid Connections

• •FERC has ordered grid operators to expedite connections for AI data centers.
• •Data centers will pay for their own grid upgrades under the new mandate.
• •Electricity demand from data centers is projected to nearly triple by 2035.

On June 18, 2026, the Federal Energy Regulatory Commission (FERC) mandated that regional grid operators expedite interconnection requests from AI data centers and large electricity users. This decision aims to address the surging demand for electricity driven by AI technologies, which is expected to nearly triple by 2035. Data centers will bear the costs of necessary grid upgrades. The unanimous vote comes as delays in connecting these facilities to the grid have raised concerns about U.S. competitiveness in the AI sector. While the order facilitates quicker connections, it does not resolve the existing shortage of generating capacity, which has led to soaring electricity prices in many regions. The commission also encouraged the exploration of alternative transmission technologies to enhance grid efficiency. Energy Secretary Chris Wright had previously urged FERC to take action due to the critical nature of the situation.