AI boom sparks fight between the feds and states over who controls the grid

Rendering of Meta's Richland Parish data center. (Provided)

As America’s AI arms race accelerates, a quiet but consequential power struggle is unfolding over who controls the energy that will fuel it, The Wall Street Journal writes.

The Trump administration has directed federal regulators to fast-track new rules that would give Washington unprecedented authority over how massive data centers connect to the power grid—authority traditionally reserved for states.

Energy Secretary Chris Wright argues that speeding up grid connections and allowing data center operators to build their own power could ultimately lower electricity costs and break supply chain bottlenecks slowing new generation. But state utility regulators warn the move violates the Federal Power Act and risks driving up consumer bills, prompting a growing backlash from governors, lawmakers and former regulators.

With hyperscale operators like Google, Amazon, Meta and OpenAI pouring billions into new facilities, the stakes are enormous. Supporters call the plan essential to beating China in AI. Critics call it one of the largest federal power grabs in decades—and a legal fight waiting to happen.

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