Rulemakers play catch-up as data centers multiply

A coordination center for the Arkansas-based Southwest Power Pool

As tech companies flood the electric grid with new data centers, some states and utilities are crafting new rules to keep the artificial intelligence boom from outstripping power supply.

In Texas, regulators are working on new requirements for data centers to better share costs and ramp down their power use if ordered by the state. Ohio regulators will force data centers in some areas to pay for their connection costs. And one of the nation’s largest grid operators is offering faster connection studies for data centers in exchange for demand response programs.

The flurry of moves reflect attempts to respond quickly to an unprecedented load growth without stifling an industry that has attracted billions of dollars in investment. Just this week, President Donald Trump announced more than $90 billion in data center investments at a summit in Pennsylvania and reiterated his pledge that the U.S. would lead the world in AI development.

Dan Diorio, vice president of state policy for the Data Center Coalition, said the industry is working with regulators and lawmakers, stressing AI’s benefits and the role that large loads can play on the grid.

“We continue to emphasize that this is an industry that drives innovation, and this is an industry that is innovating every day because it has to,” Diorio said. “And so what you don’t want to do is ultimately create something that ends up imposing a one size fits all solution, or an inflexible solution. You don’t want to create something where you try to push a square peg into a round hole.”

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