The AI bubble is slowly dissolving – sort of. Companies have been gobbling up RAM to power data centers, making 2026 an expensive year for technology, to the point where some manufacturers are producing older RAM models to mitigate some of the damage. However, AI has also driven up electricity bills, even though the companies behind AI foot most of the bill.
Earlier this month, the Federal Energy Regulatory Commission (FERC) issued orders aimed, among other things, at accelerating the integration of “large energy users” such as AI data centers among all regional grid operators under its jurisdiction. This move may give the impression that the government is prioritizing the energy needs of these data centers, which is not inaccurate but also does not cover the full scope of the order. This accelerated coverage must “comply with the rules specific to the regions already in place”. The most important of these rules will protect against “cost shifting” (i.e., data center owners cannot underpay electricity costs, thereby forcing other customers to pay the rest of the expenses). Not only is FERC tackling the issue, it is also incentivizing state governments to take on enforcement duties.
To be sure, FERC’s orders are subject to change as it gives energy companies 60 days to explain why their rates should be maintained, as well as 30 days to show how they intend to provide enough power to data centers while also delivering electricity to other customers. Well, 60 days and 30 days, respectively, from order submission, which is June 18, 2026. Additionally, as transportation service models differ from region to region, potential roles, responsibilities, and rules may also differ.
A real effort or just lip service?
SNEHIT PHOTO/Shutterstock
While we are at least a month away from the actual enactment of FERC’s order, many people in the United States still have to deal with the damage caused by AI data centers. Sure, the damage includes noise pollution and lack of clean water, but at the end of the day, most people still worry about rising utility bills as the cost of electricity continues to rise.
Even though companies like Google, Microsoft, Meta, and Oracle have committed to building and purchasing new energy sources to power their data centers, they have yet to deliver on their promises…sort of. According to reports, the construction of the aforementioned power sources is behind schedule. More than 60% of the capacity, expected to be ready by 2027, has yet to begin construction. And yet, energy supplies continue to decline, leading to higher electricity bills and recurring power outages. Supply simply cannot keep up with demand.
Worse still, many power grid managers are concerned about FERC’s order. Concerns have been raised that they will no longer have the power to manage their own procurement processes. More importantly, some believe this order could potentially “undermine” efforts to focus on renewable energy sources, especially since solar power has recently begun producing more energy than coal. Given that data center energy demand could triple in the United States by 2035, cost shifting is a major and reasonable concern for the average person, although not the only one.
