Hyperscalers Will Pay for the Power They Need, Not Consumers, FERC's Swett Says

• FERC will accelerate grid connection timelines for AI data centers and associated generation, a process that currently takes years.
• Hyperscalers will be required to pay the full cost of grid upgrades and connections for their data centers, with increased transparency to prevent costs from being passed to American ratepayers.
• The current electric grid is not equipped to handle the projected demand from data centers and industrialization, necessitating aggressive and interventionist regulatory action from FERC.

FERC Chair Laura Swett announced plans to fast-track power grid connections for AI data centers, emphasizing increased cost transparency and accountability for hyperscalers. She stated that hyperscalers will bear the full cost of grid upgrades for their connections, protecting American ratepayers from unfair charges. Swett also highlighted the need for aggressive, unprecedented action to ensure grid reliability given the massive demand.