The chairman of the Federal Energy Regulatory Commission (FERC) is surprised by how little direct communication the commission receives from hyperscalers, even as data-center growth becomes one of the biggest drivers of US electricity demand.
FERC hears "nine times as much" from traditional utilities as it does from the technology companies whose load is reshaping the grid, chairman Laura Swett said at CERAWeek by S&P Global in Houston, Texas, on Thursday.
"I don't talk to them as much as I thought they would be coming in," she said, adding that when hyperscalers do engage, many "don't speak FERC", and often misunderstand how utilities operate or how the grid functions. That disconnect is slowing progress on the massive supply-and-demand challenges the power system is now facing, Swett said. Both the tech sector and utilities need more strategic, focused dialogue to keep projects moving as explosive data-center load collides with an aging grid, long construction timelines and FERC's limited jurisdiction over siting and generation, she explained.
Swett described a "breakdown in communication" between hyperscalers and grid operators, noting that data center companies are world-class innovators while the power system and its regulatory framework remain highly technical, procedural and slow-moving by design.
However, Swett acknowledged FERC's regulations can be inscrutable to newcomers. FERC's processes are "a morass and a black box to your normal, functioning human being" and require "a special category of person to understand", Swett said jokingly, but also noted that communication is crucial.
"There's this tension... We're not moving fast enough, but the lack of understanding of what we have to work with is sometimes getting in the way," she said.
She also pointed out that the communication gap does not solely lie with hyperscalers, as utilities also have a role to play in translating the grid's technical and regulatory realities for new large-load customers. Some utilities are already "really dexterous" at engaging with tech firms and can "speak in a way that is a common ground of language", she said.
"Dialog doesn't have to be lengthy," Swett said. "But pointed communication and education would help us get things done more quickly."
