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US Energy Chief Moves to Accelerate Grid Access for Data Centers

By  |  October 26, 2025

US Energy Secretary Chris Wright has instructed federal energy regulators to evaluate a proposal designed to speed up the connection process between data centers and the nation’s electric grids, according to Reuters.

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    Wright sent the Federal Energy Regulatory Commission (FERC) a proposed rule on Thursday allowing customers to submit joint interconnection requests for both electricity load and generation projects located at the same site. Per Reuters, the Energy Department stated that this change would help shorten review times, lower costs for grid upgrades, and accelerate the timeline for bringing new power sources online.

    The proposal also asks FERC to examine whether reviews for certain grid projects—currently known to take years—could be completed within 60 days. This initiative comes as U.S. electricity demand surges for the first time in two decades, driven largely by artificial intelligence and the rapid growth of energy-intensive data centers. President Donald Trump’s administration has focused on boosting national power capacity, particularly from fossil fuel and nuclear facilities, while expanding access for data center operations, according to Reuters.

    Although energy secretaries can direct FERC—an independent body within the Energy Department—to consider regulatory changes, they do not have the authority to compel adoption of those rules.

    Read more: Energy Demands From Data Centers Poised to Draw Antitrust Scrutiny, Former DOJ Official Warns

    Industry groups and environmental advocates offered sharply divided reactions. The Edison Electric Institute, which represents publicly traded electric utilities, expressed support for Wright’s proposal, saying it would help reinforce the grid and lower consumer costs.

    Environmental groups, however, condemned the move. “Pushing FERC to rubber-stamp connections in just 60 days while the government’s shut down and Trump builds a $300 million White House ballroom shows (how) out of touch his administration is from everyday Americans,” said Camden Weber of the Center for Biological Diversity.

    In addition to the grid connection rule, Wright urged FERC to review regulations governing preliminary hydroelectric permits, aiming to reduce what he described as unnecessary barriers to development. Malcolm Woolf, president and CEO of the National Hydropower Association, welcomed the step, emphasizing that “it is incumbent upon FERC, the Trump Administration, and Congress to ensure that third parties, such as Federal resource agencies, do not unduly inhibit hydropower development and instead foster its necessary growth to meet current challenges,” per Reuters.

    Source: Reuters