US Energy Secretary proposes simplifying the connection of data centers and miners to power grids

Key points:

• US Energy Secretary Chris Wright has proposed new rules allowing large consumers to connect directly to high-voltage power grids.
• This applies to data centers and mining companies competing for cheap and clean energy.
• This will speed up the connection process to 60 days and support the growth of energy infrastructure amid increasing demand due to the development of artificial intelligence.

US Energy Secretary Chris Wright has called on the Federal Energy Regulatory Commission (FERC) to speed up access to power grids for large consumers. The list includes data centers using artificial intelligence and bitcoin mining companies.

Wright asked FERC, an independent agency that regulates interstate power grids, to develop standardized procedures for connecting to the high-voltage transmission system.

The high-voltage power transmission system has a greater capacity than local grids, and large industrial enterprises must connect directly to it. Wright added:

“United States electricity demand is expected to grow at an extraordinary pace, due, in large part, to the rapid growth of large loads. Although there are several drivers to this demand growth, such as home and vehicle electrification, increasing quantities of large commercial and industrial load, most notably data centers, are connecting rapidly to the transmission system.”

Review of applications may take up to 60 days

According to Wright’s initiative, expedited review of applications for user connection to high-voltage lines should take no longer than 60 days. Applicants must be prepared to cover all costs for the necessary network upgrades.

Experts note that companies involved in AI and bitcoin mining are increasingly competing for access to cheap and renewable energy. This could attract new institutional investment over the next decade.

Earlier, the Canadian province of British Columbia banned new cryptocurrency mining projects, tightening controls on the use of clean electricity.