U.S. grid operator steering the Eastern Interconnection
A wave of local and state actions is shaping the data-center boom. New rules aim to curb power use, water consumption and cost pressures, while critics warn of overreach and uneven economic impacts.
The Federal Energy Regulatory Commission has issued region-specific orders to speed grid connections for AI-driven data centers and large energy users, aiming to balance faster power access with consumer costs. The moves target six grid regions serving over 200 million people and seek transparent cost allocation, with responses due within 60 days.
Federal regulators have issued orders to regional grid operators to speed connections for large data centers while requiring transparency and rules to prevent ratepayers from subsidising grid upgrades. Tech firms and energy officials are defending faster hookups and new cooling tech; communities and experts are warning about water, electricity and local costs as data‑center buildouts surge.
A flurry of deals links data centers with distributed energy resources. Companies are coordinating rooftop solar, home batteries and grid-scale storage to meet rising AI demand, while utilities consider new projects and regulators weigh environmental impacts.
Solar generation has surpassed coal in the US grid, led by rooftop and utility-scale projects, signaling a growing dominance of renewables. The Energy Information Administration data show renewables outpacing coal in total power delivery, with solar near the gap but not yet yearly total. The trend continues as demand climbs and permitting hurdles persist.
A heat dome has driven record electricity demand across the eastern United States. Officials warn temperatures will stay high this week and the grid faces stress as cooling needs rise. Cooling centers expand and energy-use guidance is issued to prevent outages.
The National Energy System Operator has issued a margin notice for Thursday evening due to extreme European temperatures, marking the third such notice this year. The move signals a higher cushion between demand and supply, as heat drives up electricity use and strains generation.
Renewables now account for a growing share of global power, but Africa’s path requires building institutions to turn resources into reliable, affordable electricity. The Bloomberg Africa initiative and recent policy shifts show a push to remove bottlenecks in market design, grid access, and financing to unlock private investment and extend electricity to hundreds of millions.
Governor Kathy Hochul has signed an executive order imposing a one-year statewide moratorium on new hyperscale data centres that use 50 megawatts or more, directing regulators to complete an environmental impact review and consider rules to make developers pay for power, contribute to grid upgrades and lose tax breaks. The move has drawn praise from community and environmental groups and rebuke from industry and national conservatives.
Ofgem has proposed refundable upfront deposits between £237,500 and £712,500 per megawatt for projects seeking grid connections, to stop speculative data‑centre schemes clogging the queue. The regulator has opened a consultation to force applicants to hit hard milestones or lose their place as Britain faces connection requests vastly above peak demand.
The White House has expanded a nonbinding Ratepayer Protection Pledge to include nearly 200 additional utilities, governors and data‑center developers, and President Trump has urged local leaders to welcome data centers as economic opportunities. Critics say the pledge lacks enforcement and will not prevent rising electricity bills as AI-related power demand grows.
Base Power has secured a $1 billion Series D, valuing the company at $13 billion, and is expanding with home batteries in Texas and Illinois, integrating storage to stabilize grid demand amid surging electricity use driven by electrification and AI data centers.