The Federal Energy Regulatory Commission (FERC) has directed regional electric grid operators to reform their processes for connecting data centers and other large energy users to the electric grid, aiming to accelerate data center buildout and reduce costs, according to The Hill.

FERC is the nation's federal energy regulatory body with jurisdiction over interstate power transmission. It comprises five commissioners—currently three Republicans and two Democrats.

"We are charting new territory and setting the standard for how America will responsibly and efficiently integrate large energy loads into the bulk electric grid while protecting consumers," said FERC Chair Laura Swett. "My takeaways from the hyperscalers were … that the rules aren't clear, and the markets aren't going fast enough."

Swett said the new orders require regional grid operators to demonstrate adequate safeguards to prevent costs from shifting to consumers, or to implement them. The chair also said FERC is preliminarily directing operators to "provide unprecedented transparency" to allow states to use that information when setting electricity rates.

Swett acknowledged that the commission's authority to protect ratepayers is limited and called on states to take further action. "We call on our state counterparts to finish the job," she added.

The rapid growth of data centers—driven by AI development's massive computing demands—has intensified electricity consumption and created concerns about both costs and grid reliability. Americans have grown increasingly concerned about how these server warehouses will affect their electricity prices. Power costs continue to rise, up 5.9 percent year over year in May.

Major tech companies have sought to address these concerns by signing a White House pledge earlier this year committing to cover the full costs of bringing new data centers online and preventing ratepayer price hikes.

In response to rising demand from large facilities like data centers, Senator Cynthia Lummis (R-WY) has proposed legislation to clarify that FERC has jurisdiction over how massive electricity users connect to the grid and directs the agency to create a standardized interconnection process.