The U.S. Energy Department on Oct. 24 unveiled a sweeping new proposal aimed at rapidly accelerating the grid connection of data centers and other large loads, as the Trump administration looks to double down on its support for the AI sector.

The draft rules call for standardizing the interconnection processes for large loads, with the aim of reducing study times and grid upgrade costs, while deterring speculative projects that can slow down reviews. The rules would also expedite the interconnection of facilities that agree to be curtailable or dispatchable – valuable characteristics for market operators seeking to keep the system in balance. The notice sets an April 30, 2026, deadline for final action by FERC.

The data center boom is starting to show signs of stalling amid an overwhelming number of grid connection requests and a sheer lack of power to meet surging demand from the facilities. In what amounts to an extraordinary expansion of federal powers, the DOE seeks to direct FERC to fast-track grid connection reforms to ensure the data center expansion can be sustained. It all comes as load growth in the U.S. is at the highest in two decades, according to the North American Electric Reliability Corporation.

“To usher in a new era of American prosperity, we must ensure all Americans and domestic industries have access to affordable, reliable, and secure electricity,” U.S. Secretary of Energy Chris Wright said in a letter to FERC. “To do this, large loads, including AI data centers, served by public utilities must be able to connect to the transmission system in a timely, orderly, and non-discriminatory manner.”

The DOE’s proposal is the latest in a string of bullish developments that have seen PPA valuations reach new highs. The fair market value for an as-generated, 10-year wind PPA starting in 2027 for delivery in PJM’s Dominion Zone hit $108.92/MWh on Oct. 27, according to Pexapark data, likely hitting an all-time record.  

Under the DOE’s plan, load and hybrid facilities will be subject to standardized study deposits, readiness requirements, and withdrawal penalties to weed out speculative projects, providing system planners with more accurate data for load forecasting. The plan also calls for studying load and hybrid facilities together with generating facilities, in a move that the DOE says will make the siting process more efficient and minimize network upgrade costs.

Notably, the rule would also call for the expedited connection of facilities that agree to be curtailable or can offer power back to the gird. Unclear, however, is how many facilities would be able to meet this requirement.

The proposal includes some guardrails to the industry. It mandates that hybrid facilities cover all of their network upgrade costs. It also defines a "large load" at a 20-megawatt threshold, lower than the 100-MW threshold adopted by some jurisdictions.

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