US orders faster grid upgrades to meet AI data center power demand

The US Federal Energy Regulatory Commission has ordered six regional grid operators to speed up the connection of large power users to America's aging and inefficient transmission system. The move is aimed at addressing the huge electricity demands of AI data centers, which are growing rapidly. The commission says faster grid integration is needed.

Energy Secretary Chris Wright had urged the commission to act, hoping to boost US competitiveness with China in AI. Tech companies and data center developers welcomed the order. New large data centers are now the biggest electricity users in US history, with some using more power than a small city.

The commission voted unanimously to require the six operators, which serve about 200 million Americans, to ensure timely and orderly grid access for AI data centers and other large facilities. Analysts say more power companies may be asked to speed up reforms in the future.

Data centers currently account for about 5% of US electricity demand, a figure that could triple by 2035, according to the Electric Power Research Institute. Meanwhile, public opposition to data centers is growing over concerns about high electricity and water use, noise, air pollution, and land use.