No. On 18 June 2026, FERC issued Section 206 show-cause orders to all six US regional transmission organisations rather than a binding final rule, requiring them to justify their large-load tariffs by 17 August 2026. A final standard is not expected before 2027.Source: FERC

Can FERC force data centres to switch off during a grid emergency?

Yes. The DOE issued a Section 202(c) emergency order on 18 May 2026 granting PJM authority to curtail data centres with behind-the-meter backup generation. FERC's regulatory framework underpins this authority. The DOE used Winter Storm Elliott (2022) as the statutory precedent for extending 202(c) from generation to load.Source: Lowdown data-centres update 4

What is FERC and what powers does it have over data centres?

FERC is the US Federal Energy Regulatory Commission, which regulates interstate electricity transmission. It has authority over large-load interconnection (via Docket RM26-4-000, decision due June 2026) and, working with the DOE, can issue Section 202(c) emergency orders to curtail data-centre load — as it did with PJM on 18 May 2026.Source: Lowdown data-centres update 4

Background

FERC announced on 16 April 2026 that it would act by end of June on Docket RM26-4-000, the rulemaking to standardise how new electricity loads above 20 MW connect to the US interstate transmission grid. The proceeding was opened under Section 403 of the DOE Organisation Act by Energy Secretary Chris Wright in October 2025. On 18 June 2026, FERC met the Deadline but chose its slowest available tool: rather than a final binding rule, it issued Section 206 show-cause orders to all six US RTOs, directing PJM, MISO, SPP, CAISO, ISO-NE, and NYISO to justify their large-load tariffs or propose reforms across five areas. Show-cause responses are due 17 August 2026, public comments 16 September; the RM26-4-000 docket remains open with no binding standard attached, pushing any final rule to 2027 at the earliest.

On 18 May 2026, FERC's authority was further demonstrated when the Department of Energy issued a Section 202(c) order, citing the Winter Storm Elliott precedent, granting PJM Interconnection authority to curtail data centres equipped with behind-the-meter backup generation during a heat emergency. The order was the second such 202(c) authorisation in 2026. It confirmed that federal emergency authority now extends from generation (Elliott 2022) to load (data centres 2026), transforming the risk calculus for operators building BTM gas fleets. The RM26-4-000 docket addresses three contested questions: co-location bypass of interconnection studies; BTM cost allocation; and who pays for transmission upgrades triggered by large loads. A ruling that is legally durable will accelerate large-load connections; one that is successfully challenged in court could stall them.

More questions

What happens if FERC's June 2026 grid ruling is challenged in court?

Prior FERC large-load interconnection reforms have been challenged and overturned. FERC's stated aim for RM26-4-000 was a ruling that is 'quick, efficient, and legally durable' — language acknowledging that legal durability is the critical uncertainty, not just the policy content.Source: FERC / data-centres update 2

Why are hyperscalers fighting the FERC interconnection queue?

Standard interconnection studies can delay grid connections by years and impose large cost-allocation charges on the connecting customer. Hyperscalers are seeking a fast-tracked large-load pathway that RM26-4-000 is intended to create; the contested question is whether that pathway shifts upgrade costs to existing ratepayers.Source: Mayer Brown / data-centres update 2

How will FERC's large load rulemaking affect data centres?

The RM26-4-000 order will determine whether hyperscalers can bypass standard interconnection studies, how behind-the-meter gas is treated for cost allocation, and who pays for grid upgrades triggered by large loads.Source: Mayer Brown legal analysis

Who directs FERC and how are its commissioners appointed?

FERC has five commissioners appointed by the President and confirmed by the Senate, serving staggered terms. The chair is Swett. FERC is independent of the executive branch but can be directed to open specific proceedings under Section 403 of the DOE Organisation Act.Source: FERC governance

Does FERC have authority over the Texas ERCOT grid?

No. ERCOT operates as an island grid outside both the Eastern and Western Interconnection, so it is not subject to FERC jurisdiction over interstate transmission. Data centre operators in West Texas can therefore avoid FERC's interconnection queue entirely.Source: FERC jurisdictional scope

What is FERC and what does it regulate?

The Federal Energy Regulatory Commission (FERC) is a US independent agency that regulates the interstate transmission of electricity, natural gas, and oil, and oversees wholesale electricity markets run by RTOs and ISOs across the continental US.Source: FERC official website

Source Material

Federal Energy Regulatory Commission FERC official website

How the World Sees Them

Europe

European grid operators are watching FERC's approach for a potential model; EU member-state TSOs face similar large-load queue pressures but lack a single cross-border regulator with equivalent override authority.

United States

Hyperscalers and utilities watch RM26-4-000 as the pivotal ruling: it will determine whether large-load interconnection accelerates or becomes subject to new cost-allocation rules that slow projects.