The Trump administration is moving to speed up the connection of new data centers to U.S. power grids. Energy Secretary Chris Wright has submitted a proposal to the Federal Energy Regulatory Commission that would require grid connection reviews to be completed within 60 days. The process today can take years.
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The rule targets large AI and cloud data centers that have been driving up electricity demand nationwide. These centers need steady and low-cost power to run high-performance chips and cooling systems. The government says the faster approval process would support U.S. growth in AI, cloud computing, and advanced manufacturing.
A Faster Path to Power
According to Wright, the goal is to give major industries reliable and secure electricity access. The new plan will allow projects to move ahead more quickly if they agree to lower usage during peak demand or if they add new on-site generation. This approach would help avoid grid overload during heatwaves or other high-use periods.
The proposed rule follows a case earlier this year when Talen Energy Corp. (TLN) was denied permission to directly power an Amazon (AMZN) data center from a Pennsylvania nuclear plant. That decision exposed how hard it is for new data centers to secure dedicated power sources.
The data-center industry welcomed the idea. Raul Martynek, chief executive of DataBank, stated the new rule would add “certainty” for developers. He described the plan as a “shot clock” that helps companies know when their projects can go live.
Market Reaction and Industry Impact
The news boosted shares across the power sector. Constellation Energy Corp. (CEG) rose 6.40%, while Vistra Corp. (VST) gained 5.28%, and NRG Energy (NRG) climbed 4%. Nuclear-linked companies also saw gains, with Oklo Inc. (OKLO) up 9.10% and Centrus Energy Corp. (LEU) up 11.26%.
Analysts say the faster approval process could help energy suppliers and equipment makers. Companies like General Electric Vernova Inc. (GEV) may see new demand for gas turbines and electrical hardware. However, some analysts note that the bigger challenge remains the limited supply of chips, transformers, and skilled engineers.
At the same time, state regulators and environmental groups are raising concerns about higher power costs and emissions from the growing number of AI-driven facilities. The federal proposal would give Washington a stronger role in energy approvals, which some states may resist. The Federal Energy Regulatory Commission will now review the proposal. The administration hopes for final approval by April 2026.
Using TipRanks’ Comparison Tool, we’ve gathered all the key tickers linked to the U.S. Administration’s proposed policy change. It’s a great tool for investors to gain a broader, in-depth examination of each stock and of the data center and energy sectors as a whole.
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