The Federal Energy Regulatory Commission (FERC) voted unanimously on Thursday to order six major grid operators to expedite interconnection requests from data centers and other large electricity users. This marks a significant federal intervention aimed at unclogging a growing backlog that has left new power plants waiting longer than the grid’s total existing capacity. Grid operators now have 30 days to report spare generating capacity and 60 days to defend or revise electricity rates. The directive also requires operators to be more accommodating to behind-the-meter power solutions—allowing tech companies to bypass grid bottlenecks by generating power on-site—and to consider alternative transmission technologies such as solid-state transformers or advanced grid management software.
On the same day, the Public Utility Commission of Texas (PUCT) ratified a new regulatory framework designed by the Electric Reliability Council of Texas (ERCOT). The unified “Batch Zero” mechanism evaluates power requests in groups, moving away from the slow one-by-one analysis. ERCOT’s interconnection queue now holds proposals exceeding 438,000 megawatts, with nearly 90% coming from data centers. This parallel regulatory push comes as the U.S. faces a surge in AI-driven electricity demand that is expected to nearly triple by 2035.
The policy changes directly benefit Bitcoin mining firms that are repurposing infrastructure for high-performance AI hosting. Cipher Digital shares soared 10.74% to an all-time high of $30 after the Texas decision, boosted by a $5.5 billion long-term lease agreement with Amazon Web Services at its Black Pearl campus and a previous Google-backed contract. Core Scientific gained 3% and Riot Platforms 2.2%. Core Scientific reported $78 million in colocation services revenue in Q1 2026—more than double its Bitcoin mining revenue—while Riot posted an initial $33 million from its data center division and expanded an AMD contract to 50 megawatts, with plans to support up to 1 gigawatt at its Corsicana site.
Despite faster grid connection paths, FERC’s order does not address the underlying shortage of generating capacity or guarantee lower electricity prices. Wholesale rates have already risen as much as 267% in some regions. Energy Secretary Chris Wright had warned that grid delays threatened U.S. AI competitiveness. The measures, while easing interconnection logjams, leave consumers exposed to further price strain if new generation is not built.
