The Real Estate Roundtable (RER) submitted comments on Thursday to the North American Electric Reliability Corporation (NERC) supporting efforts to address the grid impacts of large computational loads, while urging the organization for clear, workable standards to reflect how data centers are actually owned, leased and operated. (Letter, Sept. 17)

State of Play

• NERC’s Project 2026-02 would establish new definitions, registration criteria and mandatory reliability standards for certain data centers called, “large computational loads,” connected to the U.S. electric grid.

• The proposal would require Computational Load Owners (CLOs) and Computational Load Operators (CLOPs) to register with NERC when a site has at least 50 megawatts of total connected load and meets a separate 100-kilovolt connection criterion.

• The proposed standards address data-center interconnections, grid-impact studies and modeling, operational communications, information sharing, and monitoring of how facilities respond to grid disturbances.

RER Recommendations

• RER’s comments call for clear responsibilities based on which entity owns or controls the property, equipment, operations, and information covered by each requirement. (Letter, Sept. 17)

• Distinguish owners from operators. At many leased and colocation facilities, the entity that owns the land and buildings is separate from the tenant that controls the servers, computing equipment, and associated electricity load. NERC’s definitions should account for these distinct roles and assign compliance responsibilities accordingly.

• Clearly define covered sites. RER recommended that NERC limit the definition of a “Computational Load Site” to properties primarily used by information technology infrastructure to process, store, transmit or manipulate digital information—including cloud services, artificial intelligence and cryptocurrency mining.

• Clarify the 50-MW threshold. “Total Connected Load” should include computational load as well as electricity used for HVAC, lighting, elevators, security, fire-safety equipment, and other building systems. NERC should also provide examples showing how the threshold applies across different leasing arrangements.

• Define a “single location.” Objective criteria are needed to determine when electricity use from separate buildings or leased spaces must be combined for registration purposes, particularly at multi-building data-center campuses.

• Identify the voltage measurement point. RER asked NERC to clarify where the proposal’s 100-kV threshold should be measured, using a point reasonably attributable to the site’s electricity use rather than a remote point farther upstream on the grid.

• Require two-way information sharing. NERC should establish reciprocal obligations for owners and operators to confidentially and timely exchange the data each needs to comply with the proposed standards.

Why It Matters

• Data centers often operate under complex ownership and leasing arrangements. A building owner may be responsible for the property and its connection to the grid while having limited control over the tenant-owned equipment and operating decisions that drive computational demand.

• RER raised concerns about assigning a compliance obligation to one entity when another party controls the information, equipment or operational capability needed to satisfy it.

• Clear definitions and appropriately assigned responsibilities can support grid reliability while giving data-center owners, operators and tenants a workable framework for compliance.

Data Center Policy Developments

• The House passed the bipartisan Ratepayer Protection Act (H.R. 9340) on Wednesday by a vote of 417–3, marking Congress’ first major legislative action addressing the potential energy costs associated with the rapid expansion of AI and data centers.

• The bill would require states to consider standards preventing data centers and other large power users from shifting infrastructure costs onto existing customers. (Utility Dive, Sept. 17)

• On Thursday, Sen. Martin Heinrich (D-NM) blocked Sen. Jon Husted’s (R-OH) effort to pass companion legislation by unanimous consent, preventing immediate Senate passage. (The Hill, Sept. 17)

House Democrats Release Energy Policy Framework

• House Democrats and the Sustainable Energy and Environment Coalition (SEEC) Institute released the Thriving Economy Project, a collection of more than 800 energy, environmental and economic policy proposals that may be considered in the next session of Congress. (Report, Sept. 15)

• The recommendations include an ENERGY STAR-equivalent program for AI tools, data-center energy and water reporting, energy benchmarking for commercial and residential buildings, and disclosure of energy costs in sales and leases. (Roll Call, Sept. 15)

• Other proposals include high-performance building standards tied to federal housing and infrastructure programs, along with stronger federal siting, design, and efficiency standards for data centers.

• Data center recommendations also include mandatory NERC reliability standards, requirements to cover the infrastructure costs their electricity demand creates, and waste heat reuse to support heating and cooling nearby buildings.

What’s Next

RER will continue working with NERC and other stakeholders to support reliability standards that protect the electric grid, provide clear regulatory accountability, and reflect the operational realities of data-center ownership and leasing.