FERC orders all six US grid operators to fast-track AI data center power connections

The Federal Energy Regulatory Commission on June 18, 2026 issued show cause orders to all six US regional grid operators, giving each 60 days to justify its tariffs or file changes that speed AI data center grid connections and other large loads. The orders, issued under Section 206 of the Federal Power Act, target PJM, MISO, SPP, CAISO, ISO-NE, and NYISO.

The move applies federal pressure to the single biggest bottleneck for the AI build-out: getting gigawatt-scale loads onto the grid. The orders, detailed in the commission's announcement, direct the six regional grid operators and their transmission owners either to defend their existing tariffs or to revise them. Texas, served by ERCOT, sits outside federal jurisdiction and is not among the six.

Each operator must address five reform categories that shape large load interconnection: more efficient transmission service and study processes, cost-shifting prevention and transparency, co-location and behind-the-meter generation agreements, new services for flexible large loads, and studying generators that serve electrically proximate loads. Within 30 days, each must also file a report on whether enough generation will be available to serve existing and new demand.

FERC says the orders are meant to deliver "speed to power" for the innovation economy, the global AI race, and reshoring manufacturing. Chairman Laura V. Swett said the commission is "setting the stage for a resilient, reliable, and forward-thinking grid that empowers communities and safeguards consumers," while providing certainty for investors by directing the markets to protect existing deals. The orders advance a directive from Department of Energy Secretary Chris Wright. FERC pointed to its December 2025 order requiring PJM to adopt transparent rules for co-located generation, and its approval of SPP's High Impact Large Load initiative, as precedent.

The orders set deadlines, not final rules; operators may defend current tariffs, and any new terms would face further proceedings. How aggressively each region rewrites its rules — and how regulators weigh ratepayer cost-shifting against connection speed — will determine the practical effect.

The chip and power industries are already moving the same way. NVIDIA and Emerald AI said they are working on flexible "AI factories" designed to act as grid assets, with commercial deployment set to begin later this year.