FERC opened six large-load tariff proceedings
On 18 June 2026, the US Federal Energy Regulatory Commission opened six proceedings under section 206 of the Federal Power Act. It directed every regional grid operator under its jurisdiction to justify or reform the tariff rules used when data centres and other very large electricity users seek to connect.1
Each show-cause order asks a grid operator to justify its current tariff. The June orders grant no connection and set no national tariff; any tariff change would come later.
A proposed data centre still needs a connection under the applicable tariff and enough physical capacity for the power system to serve it safely.
The site needs enough power for its planned processors
An AI data-centre plan may begin with a target number of specialised AI processors. The building can run at its intended scale only if the site can supply their electricity and remove the heat they produce.
The International Energy Agency examined announced data-centre projects against local grid conditions and connection timing. It estimated that grid constraints could delay around 20 per cent of the global capacity planned for construction by 2030.2
What a queue position records
A connection request enters a process that tests what the existing network can carry and what must be built. The requested load may require new lines or a substation change, making the schedule for that reinforcement part of the data centre's schedule.
A queue position confirms that the operator will study the request. It provides no evidence of delivery by the preferred date. For an investment case, I would use only the capacity the operator offers under stated conditions.
A plot may accommodate the building even when the local grid cannot supply the planned electrical load. If connection work delays revenue or reduces the first phase, the land price alone understates the cost of the site.
FERC is considering who pays when expected demand does not arrive
FERC's orders test the entry requirements for a large-load study and the allocation of network costs when expected demand does not appear. A separate part of the inquiry concerns operating requirements for connected loads.3
FERC is considering financial commitments that would protect existing customers if a project is cancelled. A tariff may require that commitment before the grid operator studies the request, at a point when the final server design may still be unsettled.
Power contracts do not create grid capacity
A power-purchase contract can allocate the commercial value of electricity from a generator. It does not create transmission capacity at the data-centre site, where the physical route still has to work.
On-site generation needs its own fuel or energy supply. Many designs also continue to use the public grid.
The proceedings remain open
FERC opened six separate proceedings because the regional tariffs differ. The June orders state preliminary concerns and set no common connection timetable.
FERC's orders cover regional operators within its jurisdiction, so a project outside organised markets may face a different legal route. Local planning rules remain separate from any federal transmission tariff.
Before approving the planned server capacity, a board needs the grid operator's commitment. The decision record should state the delivery date and any condition that could reduce capacity.