POLITICO Tech How Trump's AI ambitions are at odds with a wonky energy agency
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Jan 31, 2025 Catherine Morehouse, an energy reporter for POLITICO and author of Morning Energy, joins the discussion about Trump's ambitious plans for AI and energy regulation. They explore how Trump's desire for data centers to connect directly to coal power plants could clash with the Federal Energy Regulatory Commission (FERC). The conversation reveals the complexities of balancing industrial energy needs with consumer protection. Additionally, they highlight an innovative AI model from DeepSeek that could change the energy landscape amidst growing power demands.
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Trump's AI Energy Vision
- President Trump advocates for direct power plant-data center connections to boost AI.
- This setup benefits both tech, ensuring reliable energy, and energy providers, who can charge premiums.
FERC's Role
- FERC, the Federal Energy Regulatory Commission, regulates the reliability and cost-effectiveness of the US power grid.
- Trump's plan could clash with FERC's mission to ensure stable and affordable energy for all.
FERC vs. Talon Energy
- FERC rejected Talon Energy's proposal to increase direct power supply to an Amazon data center.
- This surprised the industry and pleased consumer advocates worried about rising costs and grid instability.