AI data center boom forces federal grid cost showdown: Regulators to rule on who pays
The Federal Energy Regulatory Commission is expected to rule this month on whether AI data centers or household ratepayers fund new grid infrastructure.
PJM Interconnection’s latest capacity auction saw 40% of $16.4 billion in costs attributed to data center demand.
PJM projects summer peak demand will rise 58% by 2046, from 160 to 253 gigawatts, driven primarily by AI servers.
Two competing regulatory approaches: data centers connect through regular grid (costs spread to ratepayers) or connect directly to power plants (companies bear costs).
Customers in seven PJM states already paying $4.4 billion for data center transmission lines through electricity bills due to regulatory gaps.
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