Largest U.S. Grid May Cut Power to Data Centers to Prevent Blackouts - Gadget Review

What the report says

Gadget Review reported on July 28 that PJM Interconnection, the grid operator serving about 67 million customers across a region stretching from Virginia to Illinois, is preparing emergency rules that could temporarily reduce electricity service to large data centers. The proposal would apply to facilities drawing 50 megawatts or more, a threshold aimed at major AI, cloud and crypto-related campuses during periods of severe grid stress.

According to the report, PJM is responding to tightening power supplies, including a recent capacity auction that did not meet its supply target and wholesale power prices that nearly doubled over a year. Gadget Review said PJM’s capacity market reached its $325-per-megawatt-day price cap, signaling scarcity that can eventually affect customer bills. The article also cited reliability concerns around hyperscale data centers, noting that a single large campus can require roughly 100 MW of continuous power.

The curtailment approach described by the publisher resembles demand-response programs long used with large industrial customers: participating facilities would reduce grid demand during emergencies and rely on on-site backup generation, such as diesel or natural gas, while receiving compensation. Gadget Review said the Department of Energy has authorized this type of emergency framework, while federal rules limit diesel generator use in demand-response and emergency contexts.

The issue matters because grid operators are trying to balance fast-growing data center demand with reliability for homes and businesses. Gadget Review also highlighted the local trade-off: when backup generators run near data center clusters, nearby communities may face added pollution exposure. The broader policy debate, as summarized in the article, centers on whether data centers should provide mandatory flexibility before connecting to constrained grids and who should pay for upgrades driven by large new electricity loads.