US energy regulators have ordered the country's largest grid operator to clarify how it manages co-located data centres, a growing trend allowing facilities to connect directly to power plants.

The Federal Energy Regulatory Commission (FERC) directed PJM Interconnection to explain why its current rules are sufficient or propose updates within 30 days.

Tech firms, facing long waits for electricity connections, see co-location as a faster alternative to accessing large amounts of power. However, FERC believes the lack of clear guidelines makes it difficult for companies to navigate the process effectively.

Commissioner David Rosner highlighted the urgency, citing PJM's forecast of 30 gigawatts of added peak load within five years-equivalent to powering an entire city the size of Philadelphia.

Constellation Energy recently filed a complaint against PJM, arguing that unclear regulations have allowed utilities to block data centre projects at nuclear facilities.

FERC's intervention aims to ensure fair and transparent policies as electricity demand continues to surge.