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Data Centres: Boom and Backlash
25JUL

Six US grid operators file, none say yes

3 min read
11:23UTC

All six US regional transmission organisations filed the generation-adequacy reports FERC ordered, and not one claims it can serve its data-centre queue under existing market rules.

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Key takeaway

Every US regional grid operator told FERC its current rules cannot accommodate the data-centre queue.

All six US regional transmission organisations (RTO), the non-profit bodies that run wholesale power markets and dispatch electricity across multi-state regions, filed the generation-adequacy reports the Federal Energy Regulatory Commission (FERC) ordered by 20 July. The filings reach us summarised by docket in a Day Pitney memorandum to NEPOOL committees dated 23 July and hosted on ISO-NE's site, rather than through the filings themselves⁠1. Every one of the six says its markets hold in the near term. Not one claims it can serve its data-centre queue under current rules, and all six propose new tools instead.

ISO-NE goes furthest. It proposes that new large loads bring their own new generation, and that they be excluded from the load forecasts used to set the Installed Capacity Requirement, the volume of capacity the market buys each year to cover forecast peak demand plus a reserve margin⁠2. A data centre excluded from that requirement has no capacity bought on its behalf. It supplies its own energy or accepts curtailment. New England has seen almost none of this load and its demand has been flat or falling for a decade, so the proposal is pre-emptive rather than a response to strain.

The Midcontinent Independent System Operator (MISO), covering 15 central US states, cites a possible 4.7 GW shortfall by 2028 and will file a parallel study process for loads of 250 MW and above⁠3. The New York Independent System Operator (NYISO) sees no statewide deficiency until 2033, with New York City needs from 2031, and does not attribute an imminent gap to data centres at all. The California Independent System Operator (CAISO) and the Southwest Power Pool (SPP) are the slowest, both targeting filings on 16 November.

The spread between NYISO's 2033 and MISO's 2028 is the useful detail. These are not six regions in identical trouble; they are six regions writing the same clause into their rulebooks anyway, because the load arrives faster than a generator can be built and every operator would rather have the tool before it needs it.

Deep Analysis

In plain English

In the United States, regional grid operators are responsible for making sure there is enough electricity supply to meet demand where they operate. US energy regulator FERC ordered all six of these operators to report whether they can handle the wave of new data centres wanting to connect. None of them said yes under their current rules. Instead, each is proposing a different fix, from New England requiring data centres to bring their own power plants, to the mid-Atlantic region running a special one-off auction to buy extra capacity.

Deep Analysis
Root Causes

The structural cause identified across all six filings is that resource adequacy planning was built around gradual, geographically dispersed load growth, while data centres add large, concentrated blocks of demand at single substations within a matter of quarters, faster than new generation can typically be permitted and built.

A second structural driver, specific to ISO-NE, is that New England's overall load has been flat or declining for a decade, so its capacity market was never designed with mechanisms to absorb a new class of large, fast-growing demand; ISO-NE's own filing states it has 'not yet encountered significant large-load growth such as data centers,' meaning its proposed reform is pre-emptive rather than a response to an existing shortfall.

What could happen next?
  • Risk

    Without new tools, six separate US grid regions collectively project they cannot serve the data-centre queue they have already received.

  • Precedent

    ISO-NE's proposed self-supply requirement for new large loads, if adopted, gives other US grid operators a second working model beyond SPP's existing large-load tariff.

First Reported In

Update #12 · Ofgem prices the grid queue by the megawatt

Day Pitney LLP (hosted by ISO New England)· 4 Aug 2026
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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.