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Key developments
FERC pushes large-load interconnection rule updates
The Federal Energy Regulatory Commission issued show-cause orders directing six regional transmission organizations and independent system operators to update large-load interconnection rules for data centers. The orders target faster and clearer transmission service application and study processes, prevention of cost shifts, transparency on network-upgrade assignments, co-location and behind-the-meter generation rules, and flexible large-load service options.
Why it matters
Federal interconnection rules will shape how quickly hyperscale and AI loads can connect and who pays for grid upgrades.
Sources & driving stories
CONSTRUCTION DIVE · Ethan Howland
Construction Dive coverageOregon groups sue over Hillsboro tax breaks
1000 Friends of Oregon, elected officials, farm and property owners, Tax Fairness Oregon, Tualatin Riverkeepers and the Oregon Education Association filed suit Monday in Washington County Circuit Court against Hillsboro and Washington County. OregonLive reported the lawsuit challenges property tax breaks for 17 data centers, including successive five-year enterprise-zone applications that plaintiffs say could lock in subsidies for decades after a spring application rush before Oregon’s June 6 moratorium on new data center tax breaks.
Why it matters
The case could test whether local governments can use enterprise zones to extend data center tax abatements far beyond nominal five-year limits.
Sources & driving stories
OREGONLIVE
Oregonlive coverageMontana tariff case draws broad intervention
Daily Montanan’s Keila Szpaller reported that numerous parties petitioned to intervene in NorthWestern Energy’s Montana Public Service Commission case over a proposed tariff for data center large loads. Intervenors include the Montana Department of Environmental Quality on behalf of Gov. Greg Gianforte, Earthjustice-backed community and conservation groups, industrial customers, independent power producers, Missoula city and county, and the Montana Consumer Counsel. Parties are focused on cost shifting, low-income and fixed-income ratepayers, hidden infrastructure impacts, state siting authority, and whether a tariff alone is enough to protect existing customers.
Why it matters
Montana’s proceeding may set an early template for large-load tariffs, utility cost allocation, and state oversight of data center-driven infrastructure.
Sources & driving stories
DAILY MONTANAN · Keila Szpaller
Daily Montanan coverageWorth noting
WORTH NOTING
DeKalb weighs zoning limits
Decaturish’s Zoe Seiler reported DeKalb County, Georgia, is holding a June 23 hearing and potential vote on rules that would restrict data centers to industrial areas, cap campuses at 1 million square feet of disturbed land, require a 750-foot residential buffer, and keep a moratorium in place through Sept. 30.
WORTH NOTING
Texas poll shows opposition
The Texas Tribune reported a new University of Texas/Texas Politics Project poll finding 56% of registered voters oppose data center construction in their communities, versus 29% support, as Texas faces 248 planned projects.
WORTH NOTING
New Jersey pauses AI incentives
NJ.com reported the New Jersey Economic Development Authority temporarily paused applications for the Next New Jersey Program-AI, a tax-incentive effort aimed at AI businesses and large-scale data centers, while public backlash and local bans grow.
Still unclear
OPEN QUESTION
Can tariff and interconnection reforms stop cost shifts?
FERC’s orders and Montana’s PSC case both center on whether data centers can be connected quickly without pushing grid-upgrade costs onto existing residential, commercial, and industrial customers.
OPEN QUESTION
How durable are data center tax incentives?
Oregon’s lawsuit and New Jersey’s program pause suggest subsidy structures are becoming vulnerable to legal, political, and public-acceptance challenges.