PJM Proposes Power Cuts for Unsupported Data Centers
PJM Interconnection proposed rules to prioritize power cuts for large-load data centers that fail to provide their own electricity generation to the grid.
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, these unsupported facilities, primarily AI data centers, would be the first to face power curtailment during supply shortages and would receive only half the typical payment for reducing demand.
To avoid this status, operators must utilize Bring Your Own New Capacity by providing new generation or storage to the grid by March 1, 2027. PJM projects 70 GW of new large-load demand by 2038, while 15 GW of generation has been retired since 2022. The proposal follows a June 18 FERC order requiring all six U.S. regional grid operators to justify or rewrite connection rules for large customers.
Monitoring Analytics, LLC, the Independent Market Monitor, challenged the proposal for lacking required evidence for a proposed Large Load Registry. Meanwhile, environmental groups warn the shift could increase carbon emissions if data centers rely on diesel backup generators. In related regional developments, Dominion Energy created a new rate class for large-load customers, and Monongahela Power Company and The Potomac Edison Company are seeking approval for a $2.48 billion natural gas plant in West Virginia to address industrial growth.
