Energy Secretary Directs FERC to Develop AI Manufacturing Rules
On Friday, Energy Secretary Chris Wright instructed the Federal Energy Regulatory Commission (FERC) to start creating regulations aimed at boosting U.S. manufacturing and maintaining the country’s leadership in artificial intelligence.
In a communication to FERC Commissioners, he stated:
For the U.S. to enter a new phase of prosperity, all Americans and our domestic industries need access to affordable, reliable, and safe electricity. It’s essential that large loads, particularly AI data centers linked with utilities, can connect to transmission systems without delays or discrimination. This situation is pressing and demands prompt attention.
Wright noted that while FERC has typically not overseen load connections to the interstate transmission system, he believes that large load interconnections indeed fall under FERC’s jurisdiction.
He elaborated on the significance of this decision for manufacturing and AI growth:
The current administration aims to rejuvenate domestic manufacturing and push forward American AI innovation, both of which necessitate substantial electricity and investments in our interstate transmission infrastructure. It’s vital to handle this process efficiently, equitably, and swiftly. Therefore, I am attaching an advance notice of proposed rulemaking for the Committee’s review, as authorized by Section 403 of the Department of Energy Organization Act.
This proposed rule change had been anticipated by industry leaders after FERC declined Talen Energy’s request to directly supply Amazon’s data centers with power from a Pennsylvania nuclear plant. However, there are concerns about potential backlash from states facing rising power demands due to data centers, new manufacturing facilities, and electric vehicles.
Wright’s proposed regulations would allow for quicker reviews if data centers either add new power plants or agree to limit power consumption during peak demand periods, like heat waves.
Data center operators greeted this announcement positively. Raul Martinec, CEO of Databank, which manages about 75 data centers nationwide, remarked, “This will help us gauge when power will be accessible for our projects.” He expressed hope for timely action, stating, “Given the urgency of this matter, I look forward to your decision by April 30, 2026.”
