U.S. Congressman Jay Obernolte, co-chair of the Congressional Artificial Intelligence Task Force, has urged the Federal Energy Regulatory Commission (FERC) to expedite the development of data centers directly connected to power plants. In a letter dated December 5, 2024, Obernolte emphasized that such co-located data centers are vital for national security and maintaining global competitiveness in artificial intelligence.
This according to Reuters.
Obernolte highlighted that as AI technologies advance, their substantial energy requirements could strain the existing electrical grid. By situating data centers adjacent to power generation facilities, these centers can access immediate power, thereby alleviating grid stress, enhancing resilience, and potentially reducing carbon emissions.
The concept of co-locating data centers with power plants has sparked debates among regulators. Concerns revolve around how diverting electricity directly to these centers might impact the broader grid’s reliability and the equitable distribution of energy resources. In November 2024, FERC rejected a proposal to increase capacity for an Amazon data center at Talen Energy’s Susquehanna nuclear plant in Pennsylvania, citing unresolved questions about grid effects.
Following this decision, Talen Energy requested a rehearing on its interconnection agreement, and Constellation Energy filed a complaint seeking clarity on policies regarding co-located data centers. These actions underscore the industry’s push for definitive regulatory guidelines to support the growing energy demands of AI infrastructure.
Obernolte’s letter to FERC reflects a broader governmental initiative to bolster AI infrastructure. In September 2024, the White House established an interagency Task Force on AI Datacenter Infrastructure to coordinate federal policies and promote data center development in line with national security and economic objectives.
As the U.S. strives to maintain its leadership in AI, the interplay between data center energy consumption and grid reliability remains a critical issue. The outcomes of these regulatory deliberations will significantly influence the trajectory of AI infrastructure development and the nation’s capacity to meet escalating technological demands.
