Congress eyes data‑centre oversight

Congress is starting to move from talking about AI’s power demand to testing actual oversight tools for data centres. On May 21, House appropriators adopted a bipartisan amendment to a fiscal 2027 energy and water spending bill that would push the Energy Department to improve data-centre energy and water efficiency, according to Politico. (politico.com) At the same time, the Federal Energy Regulatory Commission is preparing a June decision on how very large new loads such as data centres connect to the transmission system. (utilitydive.com) FERC said on April 16 that it would act by June 2026 in docket RM26-4-000, which grew out of a Department of Energy proceeding on large-load interconnection. (ferc.gov) That combination matters because the policy fight is no longer confined to utility filings and local permitting boards. Congress is beginning to weigh efficiency and cost issues, while FERC is deciding who pays, who queues and where federal authority ends and state authority begins. (politico.com) ### What did Congress actually do? The House Appropriations Committee on May 21 approved a bipartisan amendment during work on a $58 billion fiscal 2027 energy and water bill, Politico reported. The amendment would empower the Energy Department to begin regulating data centres through energy- and water-efficiency improvements. (ferc.gov) Rep. Marcy Kaptur, the top Democrat on the Energy and Water Development Appropriations Subcommittee, said, “New AI and data facilities are causing energy and water prices to skyrocket.” Politico reported that Republicans and Democrats backed the measure as lawmakers face voter concerns over electricity costs and infrastructure strain ahead of the midterm elections. (politico.com) ### Why is FERC involved if Congress is only beginning to act? FERC on April 16 said it would take action by June 2026 on DOE’s proposed reforms for interconnecting data centres and other large loads to the transmission system. The commission said the goal is the “timely, orderly, and equitable integration” of major new loads into transmission infrastructure. (politico.com) Chairman Laura Swett said the agency wants to respond in a way that is “quick, efficient, and legally durable,” while preserving the line between federal and state jurisdiction. Utility Dive reported that state regulators argued in an April 13 filing that states are often best positioned to manage large-load interconnection while protecting customers from cost shifts. (politico.com) ### What is the fight over, exactly? The core dispute is about grid access and cost allocation. FERC said it has already handled related issues since October 2025, including a December 2025 order requiring PJM Interconnection to adopt transparent rules for substantial loads co-located with generation resources, and a January 2026 approval of Southwest Power Pool’s High Impact Large Load initiative. (ferc.gov) In practice, those cases turn on whether a data-centre developer can secure power quickly, whether it must fund upgrades, and whether existing customers end up paying part of the bill. Utility Dive reported that recent FERC decisions involving PJM, Southwest Power Pool, Commonwealth Edison and Tri-State helped reshape the regulatory landscape but did not settle the broader question. (utilitydive.com) ### Where does PJM fit into this? PJM, the country’s largest grid operator, remains at the center of the debate because it serves a region facing rapid load growth and repeated arguments over market design. On May 21, FERC Commissioner Judy Chang told Utility Dive, “I am not thinking about it breaking up,” referring to PJM. (ferc.gov) Chang said PJM’s market was not designed for the current moment and may need to evolve, but she said she wants its “successful continued operation.” Utility Dive reported that FERC has scheduled a July 23 meeting on PJM governance and stakeholder process reforms. (utilitydive.com) ### What happens next? FERC said its next formal milestone is action by June 2026 in RM26-4-000. The commission has tied that proceeding directly to data centres and other significant new loads seeking transmission access. Congress, meanwhile, is still at an early stage. Politico reported that lawmakers have floated proposals ranging from requiring data centres to secure their own power to state-level or national moratoriums, but the May 21 appropriations amendment is the clearest bipartisan step so far. (utilitydive.com) FERC’s July 23 PJM meeting will provide another public venue for the dispute over governance, market design and large-load growth. (politico.com) (ferc.gov)