US AI task force co-chair asks FERC to support co-located data centers – letter

NEW YORK : A co-chair of the U.S. Congressional artificial intelligence task force urged federal energy regulators this week to support the development of data centers directly connected to power plants, citing national security and competition for global AI dominance, according to a letter seen by Reuters dated Dec. 5.

U.S. Congressman Jay Obernolte said the Federal Energy Regulatory Commission should move speedily in crafting rules that encourage the expansion of AI and its need for large amounts of electricity, including by clearing the way for so-called co-located AI data centers.

“As their energy requirements increase, the development of co-located energy production will be instrumental in mitigating grid strain, improving resilience, and reducing carbon emissions,” wrote Obernolte, a Republican from California.

Co-location, which can allow data centers to power up faster than if they waited in line to connect to the broader grid, has sparked debates among regulators around how the centers will affect the reliability of the country’s electrical system.

Last month, FERC rejected in a 2-1 vote a request to increase the capacity of an Amazon data center located on the site of a Talen Energy nuclear power plant in Pennsylvania, after raising questions about how diverting nuclear electricity to serve the center would affect the broader grid.

“I urge the Commission to reject any continued delay on these decisions as you move forward shaping the nation’s energy future,” Obernolte said.

Talen, an independent power company, has asked FERC to hold a rehearing on its interconnection agreement. Constellation Energy, the country’s largest nuclear power plant operator, has also filed a complaint with FERC over co-location.