Data center and AI energy stocks rise as Trump administration reportedly pushes for data centers to access power faster
The Trump administration is urging regulators to speed up the approval process that allows for data centers to connect to the power grid, per a Bloomberg report published late Thursday evening.
Citing a proposed rule draft that US Energy Secretary Christopher Wright sent to the Federal Energy Regulatory Commission, the administration is looking to limit these reviews to 60 days. At present, such reviews can stretch on for years. “Data centers could win a speedy review if they include new power plants or agree to curtail usage in response to regional grid strain during high-demand periods such as heatwaves,” per the report.
Simply, the more roadblocks are removed from data centers being in operation, the faster a supply-constrained AI boom can realize demand. As such, adopting such a proposal could be a boon for the entire ecosystem, from data center upstarts to the fledgling power providers looking to meet the growing demand for power.
Data center companies IREN and Cipher Mining are up big in premarket trading, as are nuclear energy company Oklo and fuel cell company Bloom Energy.
Other companies identified with the AI power trade were also getting a lift, including Constellation Energy, Talen Energy, turbine-maker GE Vernova, and AI infrastructure company Vistra.
The FERC had previously rejected a request by Talen to supply an Amazon data center campus from with power from its Susquehanna nuclear plant.
Caveat: these are volatile stocks, and it’s very unclear whether this report is the catalyst for their early gains — but it certainly stands to reason that it would!
