US AI Task Force Co-Chair Urges FERC to Support Co-Located Data Centers for AI Development

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Congressman Jay Obernolte, co-chair of the U.S. Congressional AI task force, calls on FERC to support the development of data centers directly connected to power plants, citing national security and global AI competition concerns.

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US Congressman Pushes for Co-Located AI Data Centers

In a significant development at the intersection of artificial intelligence (AI) and energy policy, U.S. Congressman Jay Obernolte, co-chair of the Congressional AI task force, has urged the Federal Energy Regulatory Commission (FERC) to support the development of co-located data centers. This call to action, outlined in a letter dated December 5, 2024, emphasizes the critical role of these facilities in maintaining national security and ensuring America's competitiveness in the global AI landscape

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The Case for Co-Located Data Centers

Obernolte, a Republican representative from California, argues that FERC should expedite the creation of rules that facilitate AI expansion and address its substantial electricity requirements. The congressman specifically advocates for clearing the path for co-located AI data centers, which are directly connected to power plants

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In his letter, Obernolte states, "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"

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. This approach could potentially allow data centers to become operational more quickly than if they were to wait for connection to the broader electrical grid.

Regulatory Challenges and Debates

The concept of co-location has sparked debates among regulators concerning the potential impact of these centers on the reliability of the national electrical system. A recent case highlighted these concerns when FERC rejected a request to increase the capacity of an Amazon data center located at a Talen Energy nuclear power plant in Pennsylvania

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The decision, made in a 2-1 vote, raised questions about how diverting nuclear electricity to serve the data center would affect the broader grid. In response to this setback, Obernolte urged the Commission to "reject any continued delay on these decisions as you move forward shaping the nation's energy future"

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Industry Response and Ongoing Developments

The rejection has prompted action from key players in the energy sector. Talen Energy, an independent power company, has requested FERC to hold a rehearing on its interconnection agreement. Additionally, Constellation Energy, the largest nuclear power plant operator in the country, has filed a complaint with FERC regarding co-location

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These developments underscore the complex interplay between the rapidly growing AI industry, energy infrastructure, and regulatory frameworks. As AI continues to advance and require increasingly substantial energy resources, the debate over co-located data centers is likely to remain at the forefront of both technology and energy policy discussions.

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