Federal Energy Regulatory Commission

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🔌 Power play

Illustration: Sarah Grillo/Axios. Stock: Getty Images

The AI-driven power boom is forcing a once-in-a-generation decision about how America's electricity system should grow, Axios' Amy Harder writes. For decades, utilities planned around predictable increases in demand. AI is changing that. ⚡️ State of play: Data centers now seek amounts of electricity that used to be associated with entire cities — raising questions about who pays for new infrastructure, who gets access to scarce power and how quickly projects can connect to the grid. 🗣️ Driving the news: Debates are unfolding at the nation's largest grid operator, PJM, and at the Federal Energy Regulatory Commission. Some proposals would allow data centers to connect directly to power plants or generate their own power onsite, at least initially operating outside the broader electricity grid. 👀 What we're watching: At least one key decision by the federal agency is expected as soon as this month. The outcome of that decision and others will influence electricity prices, reliability and the pace of AI development.