US Government Opens Power Grid for AI Data Centers

The US Federal Energy Regulatory Commission (FERC) has issued official guidance to the country's major power grid operators to accelerate the process of connecting AI data centers and other large consumers to the grid. This decision is considered a critical step aimed at mitigating the energy crisis arising from the rapid development of AI technologies. This was reported by Techcrunch.com news reports.

According to the new rules, six primary grid operators must ensure the timely and orderly connection of data centers to the transmission system. Crucially, all costs associated with the connection will be borne by the data center owners—the tech giants. Commission members approved the decision unanimously.

Technological innovations and new requirements

FERC intends not only to speed up connections but also to attract startups to the sector. Operators have been tasked with exploring "alternative transmission technologies." Although specific names were not mentioned, experts suggest this refers to solid-state transformers and superconducting transmission lines.

Grid operators have been given 30 days to report their existing reserve capacities and 60 days to review or protect regional electricity tariffs. Additionally, broader opportunities will be created for data centers to use "behind-the-meter" independent energy sources.

Energy shortages and rising prices

According to Bloomberg, wholesale electricity prices in some regions have risen by up to 267 percent over the last five years. This situation is linked to the insatiable energy demand of data centers. It is estimated that by 2035, the electricity consumption of these centers will increase nearly threefold.

The complexity of the situation is that while FERC guidelines accelerate connection, they do not solve the problem of generation capacity shortages. By the end of 2023, the volume of applications for connecting new power plants to the grid exceeded the total capacity of all existing plants. In other words, the projects in the queue exceed the capacity the current system can handle.

US Secretary of Energy Chris Wright elevated the issue to the government level, warning that delays in connection could damage the country's competitiveness in the AI field. Currently, companies such as Google, Microsoft, and OpenAI are facing significant difficulties in finding stable energy sources for their data centers.