US grid to cut power to data centers
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
PJM Interconnection asked federal regulators to approve cutting power to new data centers first during shortages. The rule targets 50MW-plus data centers that lack their own generation, affecting 67 million.
Background
PJM Interconnection, the largest U.S. grid operator serving 67 million people across 13 states and Washington, D.C., has faced two consecutive capacity auctions that failed to secure enough generation. With data center demand surging, PJM projects roughly 70 GW of new large load by 2038 against only about 15 GW of new supply. The proposed rule, filed with the Federal Energy Regulatory Commission, would apply only to new loads of 50 MW or more that connect without their own generation by June 1, 2027, and would curtail them before demand-response programs.
How it unfolded
- May 2026Department of Energy issued an emergency order allowing PJM to call on large loads with backup generation during a heat event, with reserves expected below 5,800 MW.
- Aug 3, 2026Texas Governor Greg Abbott ordered regulators to audit every data center seeking grid access, pausing approvals.
- Aug 12, 2026Texas froze new data center connections to ERCOT pending the audit, affecting 474 GW of requests.
- Aug 13, 2026PJM proposed a framework to force data centers to use backup generators during emergencies, requiring state cooperation.
- Aug 17, 2026PJM filed with FERC to approve rules cutting power to new data centers first during shortages, applying to loads of 50 MW or more without own generation.
Who’s saying what
- Official
- PJM says the rule is needed to protect grid reliability and prevent blackouts for households and businesses.
- Support
- Texas Governor Abbott and at least 43 data center companies support the audit, saying it addresses public concerns and ensures data centers pay for new infrastructure.
- Caution
- Analysts warn that if PJM cannot close the supply gap, residents face increased blackout risk and higher electricity costs passed on to consumers.