While Oklahoma deals with its own boom in data center growth, opponents and critics of the electricity-demanding industry might take notice from what Federal Energy Regulatory Commission’s chair has to say about the industry.
Chairwoman Laura Sweet joined new commissioner David LaCerte at their first open meeting since being confirmed, in making it known they believe bringing data centers to support artificial intelligence online is a top priority.
The question is whether their urgency will spill over to affect Oklahoma and the data center spread.
“In addition to our core mission of keeping the lights on for all Americans at reasonable costs, my priority as chairman is to ensure that our country can connect and power data centers as quickly and as durably as possible,” Swett said, according to a report by Utility Dive.
LaCerte said much the same thing, commenting that the AI data race needs “bold action” to protect the nation’s economy as well as its national security.
“The risks of inaction or delayed action are simply too great,” he added. “I look forward to partnering with all stakeholders … to accomplish these goals.”
Here’s why their comments are critical to the nationwide growth of data centers, whether it’s in Stillwater, Pryor, Oklahoma City, Yukon or Muskogee.
With Swett and LaCerte just joining the commission, it is in the initial phases of considering a proposal from the U.S. Department of Energy for new rules governing the interconnection of data centers and other large loads to the transmission system.
When Oklahoma Corporation Commission chair Kim David recently attended a meeting of NARUC, (National Association of Regulatory Utility Commissioners) she and other members raised a series of concerns about the proposed rulemaking, including their role in overseeing retail power sales and the potential for data centers to impose costs on other electric retail customers.
They urged FERC not to overstep is authority as the federal agency tries to connective the massive data centers being built around the country to interstate power transmission grids, including the Southwest Power Pool of which Oklahoma is a member.
The resolution supported at the NARUC meeting warned that data centers’ massive power demands could strain existing generation capacity and undermine grid stability during peak demand periods or extreme weather events.
Just as Oklahoma consumers express growing concerns that they will be the ones paying higher electrical rates to supply electricity to the power-hungry data centers, the FERC’s new commissioners expressed similar concerns.
LaCerte said at the meeting, “I know that Americans are fearful of higher energy costs due to data center construction and the cost of additional transmission and infrastructure. It’s our duty as commissioners to fully protect these people from undue costs.”
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