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Data Centres: Boom and Backlash
8SEP

NERC large-load rules pass first ballot

1 min read
13:06UTC

NERC's first reliability standards for computational loads passed their initial industry ballot, applying to sites of at least 50 MW connected at 100 kV or above.

IndustryAssessed
Key takeaway

NERC's data-centre reliability standards cleared a first ballot but still need a final vote and FERC filing.

The North American Electric Reliability Corporation, or NERC (which writes the binding reliability standards for the continent's grid), saw its first computational load (CLO) standards pass their initial industry ballot on 18 September⁠1. The ballots on CLO-001, CLO-002 and CLO-003, alongside two revised facility-connection standards, opened on 9 September, and all five passed.

The CLO standards would apply to sites with at least 50 MW of load connected at 100 kV or above. The Federal Energy Regulatory Commission, or FERC (the federal grid regulator), left NERC to draw that line in a July order⁠2. Above it, a data centre would carry reliability duties rather than connect as an ordinary customer.

An initial ballot does not approve a standard. A final ballot follows in November and board adoption in December, ahead of a 31 December filing deadline at FERC. Five grid operators already hold abeyance at FERC on their own large-load answers until November.

Deep Analysis

In plain English

NERC, the body that writes electric-grid reliability rules for the United States and Canada, has three new standards, CLO-001, 002 and 003, that just passed their first industry vote. They would apply to data centres of at least 50 megawatts connected at high-voltage points of 100 kV or more. This is an early step, not a final rule. The standards still need further approval before they take effect, but they are the first NERC rules written specifically to manage computing load rather than power generation.

Deep Analysis
Root Causes

NERC standards only bind utilities and grid operators once they clear a multi-stage ballot and gain approval from federal regulators, a process that can take years.

Passing the initial industry ballot is an early step, not adoption, but it is the first continent-wide reliability standard written specifically for computational load rather than for generation or transmission equipment.

First Reported In

Update #15 · Texas freezes data-centre permits

RTO Insider· 24 Sept 2026
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Causes and effects
This Event
NERC large-load rules pass first ballot
If adopted, the standards would give large data centres reliability duties on the North American grid instead of treating them as ordinary customers.
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