Federal Regulators Unanimously Back Trump's Plan to Fast-Track Power for AI Data Centers

The Federal Energy Regulatory Commission voted unanimously Thursday to allow large energy users, including artificial intelligence data centers, to connect more quickly to the nation's electric transmission system, advancing a priority of the Trump administration amid growing public concern over energy costs and grid stability.

The commission's order directs that AI data centers and other large power users are "able to connect to the transmission system in a timely and orderly manner," according to the ruling. Under the order, data centers will be required to pay the full cost of any grid upgrades needed for their connections, shielding ratepayers from those expenses.

FERC Chair Laura Swett, a Trump appointee, described the vote as historic. "I know that Americans across the country are concerned about affordability, and so are we," Swett said. "Many Americans are increasingly concerned about the interconnection of large loads, and data centers will increase their bills in that stress."

Swett added that she is "taking extremely seriously the mission that Congress has entrusted us to ensure that rates are reasonable and that Americans pay their fair share or less."

The vote comes eight months after Energy Secretary Chris Wright urged the independent agency to take more direct control over ensuring that large computing facilities needed to power AI are connected quickly to high-voltage transmission lines. Wright framed the push as critical to helping the United States compete with China in the AI sector.

The commission's action has drawn a mixed response. Tech companies and data center developers have welcomed the prospect of faster grid connections. Utilities, states, and regional grid operators, however, have expressed concern that the administration's approach would reduce their authority to manage the interconnection process. Clean energy advocates have called on the agency to support, rather than undermine, state-level efforts to mandate the use of renewable energy sources.

The ruling comes as public opposition to data centers intensifies across the country. Residents near proposed sites have raised objections over rising electricity prices, pollution, water consumption, and the loss of open space and farmland. The backlash reflects broader tension between the pace of AI infrastructure buildout and the capacity of the power grid and local communities to absorb it.

More than 4,000 data centers now operate in the United States, according to one estimate, with an additional 3,000 planned or under construction. Data centers currently account for approximately 5% of U.S. electricity demand, a figure that could triple by 2035, according to data from the Electric Power Research Institute. In Virginia alone, data centers account for more than 25% of overall electricity demand and could reach more than 40% by 2030.

Despite heavy capital commitments, construction is lagging. A J.P. Morgan report from last month found that, based on satellite imagery, more than 60% of data center capacity planned for completion in 2027 has not yet begun construction, and another 7% is delayed. The firm cited permitting delays and shortages of gas turbines, transformers, and skilled labor as the primary causes.

Companies including xAI, Google, Microsoft, Meta, Oracle, OpenAI, and Amazon have signed Trump's Ratepayer Protection Pledge, committing to build or procure new power generation for their data centers, cover infrastructure upgrade costs, make backup generation available during emergencies, and hire locally for data center construction.

FERC took an earlier step in December to assist data center operators, voting to allow tech companies to connect a data center directly to a power plant. Thursday's order builds on that framework, reinforcing the administration's push to accelerate AI infrastructure deployment even as the commission acknowledged the limits of what regulatory action alone can accomplish in addressing tightening energy supplies.

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