Department of Energy
US federal energy department; directed FERC to act on large data-centre grid connections under Section 403 authority.
Last refreshed: 6 May 2026 · Appears in 1 active topic
Did the DOE's push actually accelerate FERC's grid rulemaking for data centres?
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Data Centres: Boom and Backlash- What is Section 403 of the DOE Organisation Act?
- Section 403 of the Department of Energy Organisation Act authorises the Secretary of Energy to direct FERC to undertake specific rulemaking proceedings. Energy Secretary Chris Wright used it in October 2025 to direct FERC to act on large-load interconnection standards.Source: DOE Organisation Act
- Who is Chris Wright and what is his role at the DOE?
- Chris Wright is the US Secretary of Energy, confirmed in January 2025. He directed FERC to act on large-load grid connections in October 2025 and has positioned AI data-centre infrastructure as a national priority.Source: DOE
- Why did the Department of Energy get involved in data-centre grid connections?
- The DOE invoked Section 403 authority to direct FERC to standardise how large loads connect to the US transmission grid, driven by the view that AI data-centre infrastructure is a national economic and competitiveness priority.Source: FERC announcement
Background
The US Department of Energy inserted itself directly into the data-centre grid-connection dispute in October 2025 when Energy Secretary Chris Wright invoked Section 403 of the DOE Organisation Act to direct FERC to act on large-load interconnection standards. The DOE's preferred deadline was 30 April 2026; FERC moved roughly two months past that, pledging action by end of June. Deputy Secretary James Danly issued a statement commending FERC's announcement. The DOE had also commissioned Lawrence Berkeley National Laboratory to model US data-centre energy trajectories, providing the foundational research underpinning FERC's rulemaking.
The Department of Energy is a cabinet-level federal agency founded in 1977 under President Carter to advance energy technology and ensure nuclear weapons security. Under the Trump administration, Secretary Wright has used DOE's grid-security and Section 403 authorities to accelerate domestic energy development, positioning data-centre AI infrastructure as a national economic and competitiveness priority. Lawrence Berkeley National Laboratory, funded by DOE, is the canonical source for US data-centre energy consumption modelling and indirect-water multipliers.
The DOE's grid-authority tools sit alongside, but do not supersede, FERC's independent rulemaking powers. The Section 403 direction is a formal administrative mechanism, but FERC operates independently and sets its own timeline. The department's wider REMIT covering nuclear weapons, clean energy RD&D, and grid modernisation also intersects with data-centre siting through its support for small modular reactor commercialisation, which hyperscalers are pursuing as a long-term alternative to behind-the-meter gas.
