FERC Directs NERC To File Reliability Standards That Apply To Data Centers

On July 16, 2026, the Federal Energy Regulatory Commission (“FERC”) issued an order that directs the North American Electric Reliability Corporation (“NERC”) to take action regarding “computational loads,” which are loads comprised of power demand from information technology equipment, such as servers, storage, and networking hardware, e.g., data centers.¹ The FERC explained that, in light of the unprecedented load growth driven by data centers, it is imperative that NERC address the reliability concerns associated with computational loads.

This order builds upon comments that NERC submitted in response to the FERC’s Advanced Notice of Proposed Rulemaking on the interconnection of large loads (FERC Docket No. RM26-4). NERC commented that demand growth is higher than at any point in the last two decades, and there are particular challenges from these substantially large loads that may create the need for quick and decisive action to address potential reliability impacts. In response