PJM Interconnection to Cut Power to Large Data Centers During Shortages to Maintain Grid Reliability
PJM Interconnection will begin cutting off power to large data centers and other significant users during periods of power shortages starting in June 2027. The grid operator, which serves 67 million customers across 13 states and the District of Columbia, is taking this action because the rapid construction of data centers has outpaced the growth of new power generation. By 2035, data centers are expected to use four times more electricity than they do today. To address the supply gap, the PJM Board of Managers directed the operator to conduct a Reliability Backstop Procurement auction from September 30 to October 21. This auction aims to fill a 6,831 GW shortfall from the previous capacity auction. The board also proposed an Interim Resource Adequacy Service framework, which requires large loads that do not provide their own power supplies to reduce their load or use on-site backup resources during emergency conditions. This move ensures that existing consumers do not bear the costs of new large loads that fail to bring their own new supply. The board also plans to create a Large Load Registry to improve transparency and data accuracy for future planning.