PJM Interconnection May Temporarily Cut Power to Large Data Centers to Prevent Blackouts
The largest electrical grid operator in the U.S., PJM Interconnection, has announced it may temporarily cut power to large data centers during shortages starting in June 2027. This decision follows a failed auction for new generating capacity and rising concerns over surging electricity demand from rapidly expanding data center operations. Data centers are projected to consume four times more energy by 2035 than they do today, straining grid infrastructure. PJM plans to implement the cuts only on facilities using at least 50 megawatts of power. Affected customers will receive advance notice and compensation similar to existing demand response programs for large industrial users. The move is expected to encourage data centers to invest in on-site generation or backup generators, which are often more expensive and environmentally harmful. The decision has drawn criticism from some quarters, including Vantage Data Centers, over concerns about the environmental impact of diesel backup systems used during outages.
Topics: data centers electricity grid energy demand regulatory response