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Key developments
FERC orders 90-day data-center grid reviews
The Federal Energy Regulatory Commission approved orders Thursday intended to move large-load data-center interconnection requests toward 90-day handling, down from processes that can take years, the Fairbanks Daily News-Miner reported. Six regional grid operators and transmission owners have 60 days to justify or revise tariffs for large-load customers. Chair Laura Swett said hyperscalers may need to bring their own power, curtail during grid stress, and pay upgrade costs; utilities must also report data-center-related costs to FERC.
Why it matters
The order makes AI data centers a formal grid-planning and cost-allocation issue rather than a case-by-case utility problem.
Sources & driving stories
FAIRBANKS DAILY NEWS-MINER
Fairbanks Daily News-Miner coverageVirginia budget deal adds data-center power tax
Virginia lawmakers reached a 2026–2028 budget agreement after weeks of dispute over data-center tax treatment, WSET reported. The deal would impose a new electricity consumption tax described as a cent and a tenth per kilowatt-hour used per month, on top of existing taxes and fees, and order an impact study of the sector’s sales and use tax exemptions. The Senate had pushed to eliminate data-center tax breaks worth billions, while the House argued to preserve them; lawmakers are set to return to Richmond Monday to vote.
Why it matters
Virginia is shifting from incentive-led data-center growth toward direct taxation and scrutiny of subsidy costs.
Sources & driving stories
WSET
WSET coverageDeSoto may pause 4-gigawatt data-center plan
WUSF’s Alice Herman reported that DeSoto County, Florida, fast-tracked review of a DCIP Group data-center proposal that grew from 34 acres to more than 800 acres. The project would repurpose a decommissioned power plant into gas-powered data centers, with natural-gas turbines capable of up to 4 gigawatts and no draw from the local utility grid, according to DCIP. County staff said the timeline was too aggressive for normal review, while residents raised concerns about groundwater, saltwater intrusion, noise, emissions and infrastructure costs; commissioners are expected to consider a moratorium.
Why it matters
The case shows local governments reconsidering very large self-powered AI campuses before water, emissions and fiscal impacts are resolved.
Sources & driving stories
WUSF · Alice Herman
WUSF coverageWorth noting
WORTH NOTING
Project Tango faces rights lawsuit
WPEC’s Katie Bente reported that a lawsuit over development rights at the Palm Beach County site could affect Project Tango, while a separate warehouse-to-data-center conversion may proceed administratively without public comment or a commissioner vote.
WORTH NOTING
California bills test Newsom
The Los Angeles Times reported that SB 886 and SB 887 have cleared the California Senate and moved to the Assembly Utilities and Energy Committee, while Imperial County approved a 45-day moratorium after litigation over a CEQA exemption for a 950,000-square-foot data center.
WORTH NOTING
Backlash report quantifies stalled pipeline
Yahoo reported that Data Center Watch tracked 75 data-center projects worth more than $130 billion delayed or canceled in the first quarter of 2026, including a withdrawn 190-acre Wake County, North Carolina proposal.
Still unclear
OPEN QUESTION
Will FERC’s speed-up protect ratepayers?
The new interconnection framework depends on tariffs, upgrade-cost allocation and cost reporting that will determine whether hyperscalers or ordinary utility customers absorb grid-expansion costs.
OPEN QUESTION
Do moratoriums become bargaining tools?
DeSoto, Imperial County and other jurisdictions are using pauses or threatened pauses to seek clearer answers on water use, emissions, power demand and local fiscal exposure before approvals.