FERC Backs Trump Plan to Speed Power to Energy-Hungry AI Data Centers
WASHINGTON — Federal regulators voted unanimously on Thursday to direct six regional grid operators to accelerate power delivery to artificial intelligence data centers, approving a key element of President Donald Trump’s strategy to maintain U.S. competitiveness against China in the AI sector. The Federal Energy Regulatory Commission (FERC) ordered that large power users — including AI data centers — be able to connect to the nation’s transmission system in a “timely and orderly manner,” according to AP News.
A Historic Vote on Grid Modernization
FERC Chairwoman Laura Swett, a Trump appointee, called the vote “historic,” saying it would push the country’s electricity market into the future while also protecting ratepayers from shouldering the costs of connecting big power users. “I know that Americans across the country are concerned about affordability, and so are we,” Swett said during the commission meeting.
The order requires data centers to pay the full cost of any grid upgrades needed for their connection, addressing a central concern about whether residential customers would foot the bill for AI infrastructure expansion. The six regional grid operators under the order serve 200 million Americans — roughly two-thirds of FERC’s jurisdiction.
Energy Secretary Chris Wright had urged FERC to act in October 2025, arguing that faster grid connections were essential for the United States to compete with China for AI superiority. The vote culminates an eight-month regulatory process that began with Wright’s directive under Section 403 of the Department of Energy Organization Act.
Surging Electricity Demand from AI
The scale of the energy challenge is staggering. 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. Data centers currently account for about 5% of U.S. electricity demand, but the Electric Power Research Institute projects that figure could triple to 15% by 2035. In Virginia, data centers already account for more than 25% of demand and could exceed 40% by 2030.
A J.P. Morgan report found that over 60% of data center capacity planned for completion in 2027 has not yet begun construction, with delays attributed to permitting bottlenecks, shortages of gas turbines and transformers, and a lack of skilled labor.
The Ratepayer Protection Pledge
The FERC vote follows the Trump administration’s broader push to address public concerns about AI-driven electricity costs. In March, major tech companies including xAI, Google, Microsoft, Meta, Oracle, OpenAI, and Amazon signed Trump’s “Ratepayer Protection Pledge,” agreeing to build or buy new power generation for their data centers and cover infrastructure upgrade costs, as reported by Fortune.
However, the pledge is voluntary and has no enforcement mechanisms. Energy experts have expressed doubt that promises alone can slow fast-rising electricity prices, which have climbed 6.3% over the past year. Rob Gramlich, a Washington-based energy consultant, said states should quickly develop rules to accommodate large power users and prevent cost shifts to residential and business customers.
Growing Community Backlash
The federal push for faster data center deployment comes amid intensifying grassroots opposition. More than 75 data center projects worth approximately $130 billion were blocked or delayed in the first quarter of 2026 alone, according to Tom’s Hardware. At least 69 local jurisdictions have enacted bans or moratoriums on new data centers.
Monterey Park, California, became the first U.S. city to enact a citywide prohibition on data centers through a voter-approved ballot measure in June, with 86.4% of voters supporting the ban. Mayor Elizabeth Yang told Climate Home News that the city’s response was the result of sustained resident organizing. “We want to fulfill our duty of listening to residents,” Yang said.
Environmental Stakes
The environmental footprint of AI data centers is drawing increasing scrutiny. A June 2026 UN report estimated that AI data centers could consume 945 terawatt-hours of electricity annually by 2030 — roughly twice France’s 2025 power consumption. The report calculated that this would require approximately 6.7 billion trees grown over 10 years to offset the carbon footprint, and a water footprint equal to the annual domestic needs of 1.3 billion people in Sub-Saharan Africa.
The International Energy Agency found that electricity consumption from AI-focused data centers grew by approximately 50% in 2025 alone, warning that “social acceptability is also a growing issue, as communities push back against data center projects.”
State-Level Pushback
While the Trump administration pushes for faster deployment, 27 states are advancing legislation requiring developers to cover energy costs and report usage. California, Ohio, and Utah have already enacted laws that go beyond the federal government’s voluntary Ratepayer Protection Pledge. Energy consultant Rob Gramlich warned that FERC could assert broader jurisdiction over interconnection of large power users if states do not act quickly.
What’s Next
The FERC order could accelerate data center construction in regions under the six affected grid operators, potentially easing power bottlenecks for major tech companies. However, implementation challenges — including permitting delays, equipment shortages, and persistent labor constraints — may limit the order’s immediate impact.
Trump signed a separate executive order on June 2 establishing a framework for the federal government to vet national security risks of advanced AI systems for up to a month before public release, as detailed in a White House fact sheet.
Looking ahead, the tension between federal and state authorities over data center regulation is likely to intensify, with more states expected to enact mandatory cost-recovery and environmental reporting laws. The environmental footprint of AI data centers — and whether they can be powered by clean energy — will become an increasingly prominent political issue, especially as the 2026 midterm elections approach.