Data centers may face temporary power cuts to prevent blackouts on largest US grid - TechCrunch

What the report says

TechCrunch reported that PJM Interconnection, operator of the largest U.S. electrical grid, plans to temporarily cut power to some data centers and other major electricity users during supply shortages. The measure follows an auction for new generating capacity that did not secure enough resources, amid rapid data center construction that is increasing pressure on the grid. PJM’s service area stretches from Virginia to Illinois and covers about 67 million customers.

According to the report, the curtailment policy will not begin until June 2027 and will apply only to data centers using 50 megawatts or more. PJM is also running another auction for generating capacity. The approach resembles long-running demand response programs, in which large power users such as manufacturers can be paid to reduce consumption when the grid is strained. TechCrunch noted that advance notice in such programs can range from roughly 30 minutes to several days, depending on demand forecasts.

The decision matters because electricity demand from data centers is projected to rise sharply as artificial intelligence and cloud computing expand. TechCrunch cited expectations that data centers could use four times as much electricity by 2035 as they do today. The policy may encourage more facilities to install on-site power or rely on backup generators, including diesel units, which can be more expensive and more polluting.

TechCrunch also placed the move within broader scrutiny of PJM’s handling of new capacity and large users. The article said wholesale power prices in the region have nearly doubled over the past year, and that PJM’s independent market monitor attributed much of the increase to data centers.