The Federal Energy Regulatory Commission on June 18 ordered six major U.S. regional grid operators to either defend their current data center grid interconnection rules or submit concrete reform proposals within 60 days, as AI infrastructure demand is straining the nation's power grid.

These orders were issued pursuant to Section 206 of the Federal Power Act and apply to PJM Interconnection, Midcontinent Independent System Operator, Southwest Power Pool, California Independent System Operator, New England ISO, and New York Independent System Operator. The Texas grid, operated solely by ERCOT, is not included.

Each operator must address five aspects: accelerating the processing of transmission service applications; safeguards against passing costs to existing customers; rules for co-location and behind-the-meter generation; new transmission services designed specifically for large flexible loads; and study processes for generation facilities serving nearby AI infrastructure.

Operators and their transmission owners must also submit a report within 30 days explaining how they plan to provide adequate power supply for both existing customers and new large energy users seeking interconnection. FERC expects data centers to bring their own power or agree to reduce consumption during peak demand periods.

This rulemaking effort was initiated after Energy Secretary Chris Wright instructed FERC to consider reforms in October 2025, aiming to ensure timely interconnection of large industrial loads. AI data centers have become a major driver of new electricity demand in the United States, with some forecasts suggesting the sector could account for one-quarter of U.S. electricity consumption by the end of this decade.

The commission's action comes after years of interconnection queue backlogs. A single large AI training cluster can consume 500 megawatts or more, equivalent to the output of a mid-sized power plant. SpaceX's acquisition of Cursor last week highlights how quickly AI companies are expanding their infrastructure footprint. Google and Microsoft have both announced tens of billions of dollars in data center investments this year.

Microsoft's $10 billion AI commitment to Japan exemplifies the scale of ongoing global construction. FERC's order sets hard deadlines for grid operators and makes clear that the federal government now regards AI power interconnection as a national economic priority rather than a routine licensing matter. Whether the 60-day response window will produce viable reforms or further legal challenges remains an open question facing the commission this summer.