Show cause orders issued Thursday by the Federal Energy Regulatory Commission require organized markets to consider flexibility in data centers, something the Nicholas Institute has done influential studies on, reports RTO Insider. “FERC’s ruling emphasizes getting more from existing infrastructure broadly and gives runway for flexible interconnection options specifically,” said Nicholas Institute expert Jackson Ewing. “States and transmission organizations should prioritize these pathways.”

The Federal Energy Regulatory Commission (FERC) directed the six regional power grid operators in its jurisdiction to reform rules governing how data centers and other large energy consumers connect to the power grid, reports T&D World. Nicholas Institute expert Jackson Ewing said the FERC ruling emphasizes getting more from existing infrastructure broadly and gives runway for flexible interconnection options specifically. “States and transmission organizations should prioritize these pathways,” he said.

The Federal Energy Regulatory Commission issued a series of orders intended to speed interconnection of data centers and other large energy users in six regional grids under its jurisdiction. The orders propose several reforms for grid operators to address, including providing new transmission services for flexible large loads. Duke University expert Jackson Ewing commented on the potential impact of FERC's actions.

The Federal Energy Regulatory Commission's June 18 ruling on large loads "emphasizes getting more from existing infrastructure broadly and gives runway for non-firm interconnection options specifically," writes Nicholas Institute expert Jackson Ewing in a commentary at Latitude Media. "States and transmission organizations should prioritize these pathways."

In this episode of "Abundant Energy," Nicholas Institute expert Tim Profeta joined host Todd Thomas and fellow guest Tom Mathew, senior strategy manager at NorthStar Clean Energy, to explore one of the biggest infrastructure questions of the AI era: How do we power the rapid growth of data centers without sacrificing affordability, reliability or sustainability?

If AI data centers can find a way to reduce or shift power consumption during periods of peak demand, the extraordinary measure of building on-site power generation may not always be necessary, reports IEEE Spectrum. U.S. grids could provide an additional 76 GW—about 10 percent of peak demand—if large loads like data centers curtailed their power use just 0.25 percent of the time, according to a landmark 2025 Duke University report.

Compute heat rate attempts to measure price sensitivities for data centers considering when to be flexible in their operations, reports RTO Insider. A 2025 study from Duke University scholars calculated that 98 GW of new load could be added to the grid with an average annual load curtailment rate of 0.5%.

Startup Soma Energy announced in April that it raised $7 million in pre-seed and seed funding for its work leveraging AI to help data centers access existing grid capacity and optimize available energy resources, reports Latitude Media. Despite widespread concerns about congestion, the grid is believed to have about 100 GW of capacity that could be unlocked through improved utilization, according to a 2025 analysis conducted by Duke University scholars.

Discussions at the third annual “From Billions to Trillions” summit ranged from filling clean energy investment gaps to addressing AI energy demand to navigating political risks … and much more.

The growth of data centers, alongside electric vehicles and manufacturing, is driving the largest surge in electricity demand in the U.S. in decades, Nicholas Institute expert Tim Profeta explained to WHYY News in Philadelphia. This could present an opportunity to improve the grid—or it could raise costs for households and undermine grid reliability, Profeta said.

Duke University kicked off industry discussions on large load flexibility with a February 2025 report, writes columnist K Kaufmann for RTO Insider. Kaufmann reports that a new policy brief takes the next step, calling on state regulators to develop official definitions of flexible large loads "based on a set of enforceable curtailment commitments meeting specific technical requirements."

The data center boom is changing grid conditions quickly—and companies want to go even faster. That provides an opportunity to include demand response—which could be implemented without changing market rules—in negotiations in a way that benefits everyone, Nicholas Institute expert Martin Ross explained to Energywire.

Data centers that power AI consume large amounts of water to keep servers cool and electricity to keep them running. Nicholas Institute expert Jackson Ewing talked with WXII 12 News about the potential implications for individuals' electric and water utility bills.

The power industry and its regulators are increasingly urging tech companies to scale back energy consumption at data centers when called upon by utilities and grid operators, Reuters reports. Taking action when local grids are maxed out could save $40 billion to $150 billion in capital investments over the next decade, according to a recent Nicholas Institute analysis.

Rapid electricity demand growth from data centers and other large loads is straining grid reliability and energy affordability for existing customers, and traditional utility planning approaches are proving too slow and costly to keep pace. A new policy brief from experts at Duke University and Roselle LLP details how states could facilitate access to power for large loads while protecting existing customers.