The proliferation of artificial intelligence (AI) data centers and other high-demand facilities is imposing significant new energy and infrastructure demands on the electric grid. This rapid pace of development is testing the limits of legacy regulatory rules, forcing policymakers and industry participants to consider a patchwork of solutions, ranging from new tariff designs to special contracts. There is also growing concern in some corners of the industry over rate hikes, resource adequacy, and reliability.
Against the backdrop of these changes, the US Department of Energy (DOE) took the uncommon step of issuing an advance notice of proposed rulemaking (ANOPR) directing the Federal Energy Regulatory Commission (FERC) to initiate a rulemaking aimed at standardizing and expediting the interconnection of large loads, including hybrid facilities that pair substantial consumption with on-site generation. The DOE’s directive offers broad principles to guide a rulemaking standardizing large load interconnections and suggests incentives for standalone large load facilities and those co-located with generation. Standardization. However, it leaves open critical questions around execution and jurisdiction.
Additionally, regional grid operators and state policymakers are advancing their own measures to address the operational and planning challenges posed by rapid load growth. These initiatives include efforts to streamline interconnection study processes, state legislation establishing frameworks for large-load integration, and new tariff constructs intended to shield ratepayers from infrastructure costs driven by data center growth.
FERC is considering its response to the ANOPR and recently extended the initial public comment deadline to November 21, 2025, with reply comments due December 5, 2025. If FERC responds, it will need to determine how best to balance speed with reliability and cost concerns raised by industry stakeholders. Please visit our Power and Pipes blog for more details on the DOE ANOPR and implications for the industry.