US ENERGY REGULATOR DIRECTS PJM TO SET AI DATA CENTER RULES

The U.S. energy regulator on Thursday directed the largest U.S. grid operator, PJM Interconnection, to establish rules on the connection of artificial intelligence-driven data centers and other large electricity loads located next to power plants, a move an analyst says benefits existing natural gas and nuclear plants.

Backers of AI and other facilities that consume large amounts of power say that co-locating them near power plants offers efficiency benefits, including cutting the need for new transmission lines. Opponents say it can damage grid reliability and raise power bills for surrounding communities by reducing electricity available for public use.

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