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FERC: Full-Cost Allocation Is Now Binding

The Federal Energy Regulatory Commission voted unanimously this week to require six regional grid operators — covering roughly 200 million people, about two-thirds of FERC's jurisdiction, excluding Texas — to formalize how they handle connection requests from large electricity users, including AI data centres.

Deadlines and obligations:

• 30 days: Grid operators must respond on how they will ensure adequate power supplies for new and future data centres.
• 60 days: Grid operators and transmission owners must either justify current connection rules or propose changes. Changes can include cost-assignment frameworks and procedural clarifications.
• 60 days (additional): Operators must submit integration plans for large power users under the new framework.
• Full cost of grid upgrades tied to new large-user connections is borne by the connecting party, not ratepayers.

FERC Chair Laura Swett stated the order is designed to keep electricity rates reasonable and to prevent retail ratepayers from subsidizing infrastructure built for hyperscale customers. Energy Secretary Chris Wright initiated the proceeding eight months ago by asking FERC to expand its role in speeding grid access for AI compute facilities.

The load trajectory:

• Data centres consume ~5% of US electricity today (EPRI).
• EPRI's 2026 projection: 9%–17% by 2030.
• IEA projection: global data centre consumption roughly doubles to ~945 TWh by 2030, reaching ~3% of global electricity.
• EPRI: US data centre load could triple by 2035.

For e-commerce brands hosting on AWS or running multi-cloud architectures, grid-side cost allocation is no longer a passive utility variable. It enters the COGS model as a regulator-set pass-through mechanism with defined timelines.

EU: Gatekeeper Classification Under Review

Per Computerworld, the EU is weighing whether to classify Microsoft and Amazon cloud services as gatekeepers under its competition framework. The available reporting does not specify an implementation timeline. For merchants operating in the EU, any obligation on interoperability or data portability would alter the lock-in calculus for multi-year cloud commitments — specific requirements remain pending regulatory detail.

What to Track

Upside:

• The FERC order introduces a more orderly queue process, reducing discretionary capacity allocation by hyperscalers.
• Continued capital allocation toward cloud capacity expansion in the hedge fund basket supports sustained merchant-serving infrastructure investment.

Downside:

• Full-cost grid upgrade pass-through is now a direct line item in hyperscaler unit economics.
• EU gatekeeper designation, if confirmed, would add contract renegotiation exposure for European merchants on existing multi-year cloud commitments.

Two clocks are now running: the 30-day FERC power-supply response window and the unresolved EU regulatory timeline. Both affect cloud cost pass-through for e-commerce operators within the current fiscal planning cycle.