Energy Regulator’s Data Center Order Walks State Power Tightrope

The Federal Energy Regulatory Commission’s Thursday order telling the nation’s largest grid operator to put together rules on connecting data centers to power sources marks another step to address the ongoing problem of meeting high electricity demand with adequate supply.

Achieving that goal, however, might require mandatory rules for data centers and the commission to work within its Congressionally-approved authority, environmental advocates say.

“The sweeping issue is that FERC and the federal government control the wholesale electrical system, but then the retail system and service to individual customers is done by ...