PJM Proposes Power Curtailment for New Large Data Centers

Grid operator PJM Interconnection has filed a proposal with the Federal Energy Regulatory Commission to implement a conditional reliability framework for new large electricity users. The rules target New Large Loads—facilities with a peak demand of 50 MW or more entering service after June 1, 2027—that do not secure their own electricity generation.

Under the proposed Interim Resource Adequacy Service, unsupported data centers and facilities would be curtailed during supply shortages before households and other demand-response customers. To avoid these shutoffs, operators can utilize a Bring Your Own New Capacity option through new generation or storage. PJM's board projects 70 GW of new large-load demand by 2038, contrasting with 15 GW of generation retired since 2022.

The proposal includes a Large Load Registry to track site locations and power draws. However, Monitoring Analytics, the Independent Market Monitor, has challenged the tariff for lacking required supporting evidence for registry entries. Joseph Bowring, the Market Monitor's executive director, argued that the tariff should require monthly updates and ongoing validation for load status.