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 to this situation, NERC has developed a large load action plan that would require the registration analysis of large loads.

The FERC agreed that there is an urgent need for action to assure that computational loads are reliably integrated into the operation of the Bulk-Power System, noting that NERC has documented multiple grid disturbances in which computational loads have caused or contributed to the instability of the Bulk-Power System. The FERC found that it is imperative that NERC address the reliability concerns associated with computational loads in a timely manner and with greater certainty than provided by NERC’s own voluntary timelines. Thus, FERC directed NERC to (1) file modified Reliability Standards to address reliability risks to the Bulk-Power System associated with the integration of computational loads by December 31, 2026 and (2) revise NERC’s Rules of Procedure to require the registration of computational load entities by December 31, 2026. The FERC also ordered NERC to file a workplan detailing the next steps to adopt additional Reliability Standards pertaining to computational load integration by March 1, 2027.

Footnotes

[1] Reliability Standard(s) Pertaining to Computational Load Integration, 196 FERC ¶ 61,031 (2026).