Wright calls on FERC to ‘reform’ grid regulations

By Francisco "A.J." Camacho | 10/24/2025 06:59 AM EDT

The Energy secretary’s directive comes as federal guidelines for connecting AI data centers to regional power grids remain unsettled.

Energy Secretary Chris Wright is seen earlier this year on Capitol Hill in Washington.

Energy Secretary Chris Wright is seen earlier this year on Capitol Hill in Washington. Mark Schiefelbein/AP

Energy Secretary Chris Wright directed the Federal Energy Regulatory Commission on Thursday to launch a rulemaking aimed at slashing the time it takes for data centers and U.S. manufacturers to connect to the power grid.

Wright’s proposal also addresses “co-location” — the effort to develop data centers and power generation together. FERC has struggled to get a handle on electric reliability and cost issues that come with the huge amounts of power that could come onto the grid or be pulled off the grid as a result of co-locating facilities.

“To usher in a new era of American prosperity, we must ensure all Americans and domestic industries have access to affordable, reliable, and secure electricity,” Wright wrote in a letter to the commission. “To do this, large loads, including AI data centers, served by public utilities must be able to connect to the transmission system in a timely, orderly, and non-discriminatory manner.”

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Since February, FERC has been grappling with the details of a potential rule as America’s technology giants race to build energy-hungry data centers for artificial intelligence. Chair David Rosner in September commented only briefly on the commission’s progress and closed-door deliberations, telling reporters that it has elicited different opinions. The commission, he said, is still working on it.

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