The Biden administration is pushing for what would amount to a revolution in how data centers connect to America’s power grid, with a new proposal that could cut wait times from years to just 60 days for major projects.
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According to reports from Bloomberg, Energy Secretary Chris Wright is urging the Federal Energy Regulatory Commission to dramatically accelerate its review process for new data center interconnections. The draft proposal, if adopted, would represent one of the most significant regulatory changes for the energy-intensive data center industry in recent memory.
From Decade-Long Waits to Two-Month Reviews
What makes this proposal particularly striking is the sheer scale of the acceleration being contemplated. Industry sources indicate that under current systems, data center grid connection reviews can stretch up to ten years in some jurisdictions—a timeline that has become increasingly untenable given the explosive growth in computing demand.
The draft framework would compress this process down to just 60 days for qualifying projects. Notably, the accelerated pathway would apply specifically to new loads greater than 20MW and hybrid facilities with similar capacity thresholds. That puts major cloud campuses and AI data centers squarely in the crosshairs of these reforms.
Analysts following the energy sector suggest this move reflects growing recognition at the highest levels of government that the traditional interconnection process simply cannot keep pace with the demands of modern digital infrastructure.
Cost Responsibility and Integrated Planning
The proposed reforms aren’t just about speed—they also introduce significant changes to how costs are allocated. According to the draft language, load and hybrid facilities would be required to pay 100 percent of assigned network upgrade costs, though with potential cost-crediting mechanisms over time.
Perhaps more strategically, the proposal emphasizes studying load and generation facilities together “to the extent practicable.” This integrated approach, energy experts suggest, could allow for more efficient siting of both power consumption and generation assets, potentially minimizing the need for expensive grid upgrades.
Secretary Wright’s letter reportedly makes direct reference to the “unprecedented current and expected growth of large loads” seeking interconnection, arguing that standardization has become necessary given the scale of demand.
Industry Backing and Regulatory Context
The push for faster interconnections comes amid growing tension between data center developers and energy regulators. Industry observers note that data center companies have been particularly supportive of regulatory changes following FERC’s rejection of the proposed behind-the-meter power agreement between AWS and Talen Energy earlier this year.
Since that decision, FERC has taken several actions affecting the data center sector. In September, the commission urged utilities and regulators to refine load forecasting practices to better account for surging energy demand from data centers. Then in February, FERC launched a review of colocation agreements between AI-focused data centers and generation sites in the PJM interconnection region.
That review sought to clarify guidelines for nearly 8.5GW of proposed projects that had been bypassing traditional interconnection processes—a clear signal that regulators were grappling with how to handle the industry’s evolving power procurement strategies.
Political Winds and Personnel Changes
The regulatory landscape is further complicated by recent political shifts. The commission has undergone significant personnel changes since President Trump’s return to the White House, with the Senate approving new commissioners in October.
Laura V. Swett of Virginia and David A. LaCerte of Louisiana now join the commission, with Swett taking the chair position. These appointments could influence how the proposed interconnection reforms are ultimately received and implemented.
What’s clear from industry reaction is that the current system is increasingly viewed as broken. With AI workloads driving unprecedented electricity demands and cloud providers racing to build capacity, the decade-long interconnection queues that have become common in some regions represent a critical bottleneck for digital infrastructure expansion.
The 60-day proposal represents a radical rethinking of how energy regulators balance grid reliability with economic development priorities. Whether FERC adopts this framework—and how it might be implemented across different regional transmission organizations—will be closely watched by an industry whose growth increasingly depends on predictable access to massive amounts of power.
References
- https://www.energy.gov/…/403%20Large%20Loads%20Letter.pdf
- http://en.wikipedia.org/wiki/Federal_Energy_Regulatory_Commission
- http://en.wikipedia.org/wiki/Electrical_grid
- http://en.wikipedia.org/wiki/Data_center
- http://en.wikipedia.org/wiki/Hybrid_electric_vehicle
- http://en.wikipedia.org/wiki/United_States_Secretary_of_Energy
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