A high-stakes debate is emerging as data centers increasingly become energy "islands" as they compete with cities in their electricity demand. Approximately 30% of all planned data center power capacity is expected to be on site, according to a report by Cleanview, a market intelligence firm, up from almost nothing a year earlier. Companies building AI infrastructure argue that avoiding the grid can bypass years-long waits to connect to the grid, provide more control and avoid straining the electric system with massive new demand. However, many in the power industry argue that connecting to grid reduces costs and improves reliability by spreading system costs across more customers and providing backup power. Some argue that fully integrating data centers into the grid will lower costs and strengthen the system. Not all tech companies are on board with the island approach, with some arguing that islanding data centers could shield other electricity users. The Federal Energy Regulatory Commission (FERC) is reviewing the Federal Power Act's rules for data centers and suggesting that the Federal Energy Act could help address this issue.