Hyperscalers often lack the ‘aptitude’ on power as the political push picks up to expedite grid connections and pipelines
Hyperscalers often lack the ‘aptitude’ on power as the political push picks up to expedite grid connections and pipelines
The federal, bureaucratic push to expedite power grid interconnections is picking up steam, but a key headwind is the lack of “aptitude” and communication from hyperscalers as they rush to electrify their AI data center hubs, said Laura Swett, chair of the Federal Energy Regulatory Commission (FERC), which oversees grid connections and pipeline approvals.
A combination of Supreme Court rulings, federal rulemaking, and a renewed congressional push for infrastructure permitting reform are all helping speed up approval and construction timelines—while reducing environmental reviews. But a big roadblock is the “tension” between Big Tech hyperscalers wanting to move faster and the “lack of understanding” of the processes, Swett said at the CERAWeek by S&P Global conference last week.
“I see difficulty and a breakdown of communication in many instances,” Swett said.
“They [hyperscalers] are very diverse in their aptitude of how things work,” she added. “I see some very successful examples, and some that just continue to butt heads.”
In their defense, she said, the bureaucratic process is a “wonky, very nerdy … morass and a black box” to most people. But the hyperscalers are not reaching out to FERC as much as she hoped, Swett said. She speaks to traditional utilities “probably nine times” as........
