POLITICO Energy Why Trump’s AI plan may have a FERC problem
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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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Direct Power for Data Centers
- Trump suggests connecting data centers directly to power plants, bypassing the grid.
- This approach offers 24/7 power for tech and steady high-volume customers for energy companies.
FERC Concerns
- FERC's intervention could complicate direct power connections due to reliability and consumer cost concerns.
- FERC Chair, Mark Christie, worries this could raise prices for average consumers and strain the power grid.
New Power Plant Construction
- Christie supports building new power plants specifically for data centers, aligning with Trump's call for faster plant construction.
- However, it is uncertain if the construction pace can match the rapid growth of data centers.