🇺🇸 English, 31 October 2026, interconnection barriers
Data Center Interconnection Barriers Tested by FERC Scrutiny
FERC issues show-cause orders to regional grid operators to justify or reform interconnection rules for large loads.
The Federal Energy Regulatory Commission has directed regional grid operators to justify or reform interconnection rules for large loads, including data centers, with attention to reliability, connection speed, and ratepayer protection.
The issue is not only whether a developer can build a server campus, but also whether the local grid, regional planning process, and cost-allocation framework can absorb a large new load without shifting unplanned costs or reliability risks onto other customers.
Regulatory scrutiny is aimed at both speed and discipline, with a focus on cost assignment and reliability review to ensure that utilities do not overbuild or underbuild for projects.