Federal regulators have taken significant steps to facilitate the integration of data centers with power plants, directing the nation’s largest grid operator, PJM, to establish new rules for co-locating large energy loads, including Artificial Intelligence (AI) data centers. The Federal Energy Regulatory Commission (FERC) has emphasized the need for clear guidelines to support the connection of data centers to various power sources, amid increasing energy demands from Big Tech companies. The move aims to streamline processes for data centers to plug directly into power generation facilities, thereby enhancing energy forecasting and addressing potential energy reserve shortfalls. Critics warn that this could lead to skyrocketing energy costs for consumers, highlighting the ongoing debate over the balance between innovation and consumer protection.