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

Summary

FERC Chair Laura Swett outlines new orders requiring hyperscalers to bear all costs of connecting data centers to the grid, promising faster timelines and cost transparency to protect consumers. She warns that the current grid cannot handle the demand surge and says aggressive, unprecedented action is needed. Swett also signals a similarly supportive regulatory approach for industrial manufacturing, giving investors a clearer path.

• FERC orders require detailed cost transparency for data center grid connections.
• Hyperscalers, not consumers, will pay all necessary grid upgrade and connection costs.
• Current U.S. electric grid generation cannot support projected data center demand without major changes.
• FERC aims to give investors clear rules and predictability for both data centers and industrial manufacturing.
• Data center buildout is framed as critical for energy, national security, and jobs.
• The commentary suggests a regulatory tailwind for large tech companies investing in AI infrastructure.