The Federal Energy Regulatory Commission has issued a landmark order directing the North American Electric Reliability Corporation to act on the reliability risks posed by data centres.
Issued on July 16, 2026, the order specifically targets what FERC describes as “computational loads,” which encompass power demand from information technology equipment such as servers, storage, and networking hardware.
FERC stated that unprecedented load growth driven by data centres makes it imperative that NERC address the reliability concerns associated with computational loads without delay.
The order builds on comments NERC had previously submitted in response to FERC’s Advanced Notice of Proposed Rulemaking on the interconnection of large loads, under docket number RM26-4.
In those comments, NERC warned that demand growth is higher than at any point in the last two decades, presenting particular challenges from substantially large loads that may require quick and decisive action.
NERC had already developed a large load action plan that would require the registration analysis of large loads as part of its initial response to the growing pressure on the grid.
FERC agreed with the urgency of the situation, noting that NERC has documented multiple grid disturbances in which computational loads have caused or contributed to instability of the Bulk-Power System.
The regulator found that NERC’s own voluntary timelines did not provide sufficient certainty or speed to address the scale of reliability risks now facing the grid.
As a result, FERC directed NERC to file modified Reliability Standards addressing risks to the Bulk-Power System from computational load integration by December 31, 2026.
NERC has also been ordered to revise its Rules of Procedure to require the formal registration of computational load entities, again with a deadline of December 31, 2026.
Beyond those immediate requirements, FERC ordered NERC to submit a workplan detailing next steps toward adopting additional Reliability Standards for computational load integration by March 1, 2027.
The order reflects the growing pressure on regulators to keep pace with the explosive expansion of artificial intelligence infrastructure and the enormous energy demands it places on national power grids.
Data centres have become one of the fastest-growing sources of electricity consumption in North America, straining transmission networks that were not designed to accommodate such concentrated and variable loads.
The FERC order, formally cited as Reliability Standard(s) Pertaining to Computational Load Integration, 196 FERC 61,031 (2026), signals a significant shift toward binding regulatory oversight of how large technology loads interact with critical energy infrastructure.