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FERC’s Data Center Grid Rules
Coverage from Mondaq, The Innovation Attorney, and others
The Federal Energy Regulatory Commission’s large-load grid rules address how regional grid operators connect data centers and other major electricity users to the transmission system.
They focus on clearer and faster interconnection studies, tariff rules and service options, including arrangements involving co-located or behind-the-meter power. The framework also raises questions about who pays for transmission upgrades and how operators demonstrate adequate power supplies without shifting costs unfairly to other customers. FERC’s directions apply to operators including PJM, MISO, SPP, CAISO, ISO New England and NYISO, while states retain authority over retail electric rates and other areas such as siting.
If you read one thing
It gives a broad, clear account of FERC’s regional tariff orders, cost protections, and power-adequacy requirements.
Latest development
As the identified Story So Far driver, it adds concrete examples of how limited power and curtailment can bound faster grid access.
Best explainer
It explains the orders’ treatment of flexible loads and co-located power, a distinct pathway alongside tariff and adequacy reforms.
Regional tariff reform is underway
FERC’s six regional proceedings are driving operators to defend or revise large-load connection rules, with attention to study timelines, co-location, and service design. The approach remains region-specific rather than a single national standard, and the supplied evidence reports that the federal standards deadline was missed.
Cost responsibility is central to reform
The reform track focuses on clearer disclosure and assignment of transmission and upgrade costs, with large-load customers expected to bear costs attributable to their requests. Preventing cost shifts to existing customers remains a key constraint, including for projects that are speculative or do not proceed.
Grid access remains bounded by available power
Faster interconnection procedures do not themselves add generation or guarantee firm service. Resource-adequacy reviews, a reported PJM capacity shortfall, and proposals for curtailable or nonfirm service show that some large loads may need to accept interruptions or wait for upgrades and new supply.
Flexible and co-located service offers alternate pathways
The tariff reviews address co-located generation, behind-the-meter supply, and flexible loads as ways to connect large projects within transmission constraints. These options may provide alternate routes to service, but do not remove the need for adequate supply or potential grid upgrades.
up to seven years
maximum duration of SPP's nonfirm bridge service
“SPP’s Conditional High Impact Large Load Service, accepted by FERC on June 5, 2026 under docket ER26-1323-000 and effective July 1, 2026, provides a nonfirm bridge. A large load can use available transmission capacity for up to seven years while upgrades for firm service are built or new generation comes online; SPP may curtail the load during constraints or emergencies.”
20 megawatts
large-load threshold in DOE's earlier notice
“FERC’s June orders preliminarily define a large load as a new commercial or industrial customer at one site with peak demand of at least 50 megawatts, connecting above 69 kilovolts and not part of a colocated arrangement. The threshold tracks a proposal from the MISO Large Load Working Group. DOE’s earlier notice used 20 megawatts.”
50 megawatts
minimum peak demand for FERC's preliminary large-load definition
“FERC’s June orders preliminarily define a large load as a new commercial or industrial customer at one site with peak demand of at least 50 megawatts, connecting above 69 kilovolts and not part of a colocated arrangement. The threshold tracks a proposal from the MISO Large Load Working Group. DOE’s earlier notice used 20 megawatts.”
about 4% percent
share of U.S. electricity consumed by data centers currently
“Data centers currently consume about 4% of U.S. electricity; projections cited in the article suggest that share could rise to 12% by 2028.”
April 30
deadline for FERC to establish national data-center grid-connection standards
“The Department of Energy set an April 30 deadline for FERC to establish national standards for connecting data centers to the grid. FERC missed the deadline and issued orders in mid-June requiring regional grid operators to explain within two months how their pricing structures could accommodate more data centers or change them.”
Regional grid rules tie faster large-load access to curtailment risk
Regional rules are beginning to make the tradeoff behind faster large-load connections concrete: SPP offers nonfirm service while upgrades or new generation are arranged, subject to curtailment, and PJM has proposed prioritizing emergency curtailments for new loads without their own capacity. Faster access can therefore come with less assured power supply.
Previously
FERC has directed six regional grid operators to defend or revise tariff rules for connecting data centers and other large electricity users. The orders call for clearer, more efficient connection studies, transparent upgrade costs, safeguards against shifting costs to other customers, and reporting on adequate power supplies. The resulting rules could affect project connection timelines and how developers, utilities, and other ratepayers share the costs and reliability obligations of new loads.