Federal regulators on Thursday ordered regional grid operators to accelerate connections for power-hungry artificial intelligence (AI) data centers, a move welcomed by tech companies and data center developers even as communities face rising electricity bills and environmental degradation. The unanimous vote by the Federal Energy Regulatory Commission (FERC) directs six regional grid operators to ensure large power users connect to the transmission system “in a timely and orderly manner.”
FERC Chair Laura Swett, an appointee of President Donald Trump, called the vote historic, claiming it would push the country’s electricity market into the future while protecting ratepayers from shouldering the costs of connecting big power users to the grid. Swett stated that the commission takes seriously its mission to ensure rates are reasonable, acknowledging that Americans are concerned about affordability and that data centers could increase their bills. However, the order itself “can do little to address the tightening energy supplies that are driving up electricity bills in some areas and raising warnings of blackouts” as data center construction outpaces new power plant development.
The State Serves Capital
Energy Secretary Chris Wright had urged FERC to act eight months ago, citing the need for the United States to compete with China in the fast-growing AI sector. President Trump views the rapidly evolving technology as crucial for the U.S. to attract foreign investment and maintain its economic and military prowess, signing an executive order this month to vet national security risks of advanced AI systems. This aligns the state apparatus directly with the interests of transnational corporations seeking to expand their AI infrastructure.
The commission’s action follows an earlier step taken six months ago, when FERC voted to allow tech companies to effectively plug data centers directly into power plants. Robert Montejo, a lawyer representing data centers, stated that AI has “fundamentally changed the electricity landscape,” and that the grid and prior policy were not built for the current pace and scale of demand from AI infrastructure. This framing justifies the state's intervention to reconfigure public infrastructure for private capital accumulation.
The six regional grid operators under the order serve 200 million Americans, encompassing two-thirds of FERC’s jurisdiction. FERC also invited utilities that manage their regional transmission systems to participate, further consolidating control over energy distribution in service of corporate demand.
Who Bears the Cost
While data centers are ordered to pay the full cost of any grid upgrades directly needed for their connection, the broader structural issue of tightening energy supplies remains unaddressed, threatening to shift costs onto residential and business customers. Data from the Electric Power Research Institute shows data centers currently account for about 5% of U.S. electricity demand, a figure projected to triple by 2035. In Virginia, data centers already consume more than 25% of overall demand, with projections indicating a rise to over 40% by 2030. This massive increase in demand for private profit strains public resources.
Communities across the country are already experiencing a growing backlash against data centers. Concerns include the massive amounts of energy and water they consume, fears about noise and air pollution, water shortages, and the loss of open space or farmland. More than 4,000 data centers now operate in the U.S., with an additional 3,000 planned or under construction, some consuming more energy than a small city. This widespread opposition highlights the direct human and environmental costs imposed by unchecked capital expansion.
Utilities, states, and regional grid operators had initially expressed concern that the Trump administration’s plan would remove their authority to manage the connection process. Clean energy advocates have also urged regulators to advance, rather than undermine, state-level efforts to require the use of renewable energies, suggesting the current order prioritizes speed for capital over sustainable development.
Profits Over Public Need
Tech giants, including xAI, Google, Microsoft, Meta, Oracle, OpenAI, and Amazon, have signed Trump’s “Ratepayer Protection Pledge,” committing to build or buy new power sources for their data centers and cover infrastructure upgrade expenses. They also pledged to make backup generation available and hire locally. However, this voluntary pledge does not alter the structural reality that the rapid expansion of data centers is outstripping power supply, leading to warnings of blackouts and rising bills for the working class.
Despite increased spending by tech companies on data centers, construction is lagging. A J.P. Morgan report from one month ago, based on satellite images, indicated that over 60% of data center capacity planned for completion in 2027 has not begun construction, with another 7% delayed. The report attributed these delays to permitting issues and difficulty acquiring gas turbines, transformers, and skilled labor, revealing the friction points in capital's drive for expansion. FERC has given grid operators 30 days to respond on ensuring adequate power supplies and 60 days on plans to integrate large power users, with Chair Swett hoping for faster processes “in as little time as possible.”
Rob Gramlich, an energy consultant, warned that states must quickly develop rules to accommodate large power users to prevent cost shifts to residential and business customers, implying that without such action, the burden of capital's demands will inevitably fall on the public.