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POLITICO Energy
Why Trump’s AI plan may have a FERC problem
Feb 3, 2025
Catherine Morehouse, an energy reporter for POLITICO, delves into President Trump's ambitious plan to connect data centers directly to power plants to meet surging energy demands for AI. She discusses potential roadblocks from the Federal Energy Regulatory Commission and the implications for both tech and energy sectors. The conversation also reveals alarming internal emails from the Agriculture Department ordering the removal of climate change discussions from their websites, highlighting the ongoing tensions in energy policy.
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Quick takeaways
- Trump's proposal for direct connections between data centers and power plants faces regulatory challenges from the FERC that could impact energy reliability.
- An internal email reveals that the Agriculture Department is mandating the removal of climate change discussions, reflecting broader political tensions over environmental issues.
Deep dives
Direct Connections to Power Plants
Donald Trump's proposal encourages data centers to connect directly to power plants rather than relying on the existing power grid. This approach is seen as beneficial for both the technology and energy sectors, as it ensures data centers have 24/7 access to power, which is crucial for their operations. By bypassing the grid, companies can avoid potential disruptions in service and maintain their productivity, as any downtime can directly impact their output and profitability. Energy providers recognize this as an opportunity to secure reliable, high-paying customers, making the arrangement a mutually beneficial solution.
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Discover
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