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PJM seeks rules to cut data center power during grid strain
The proposal would also restrict new data centers from joining a power auction that PJM says has driven up utility bills across its system.
PJM Interconnection, which serves Washington, D.C., and 13 states across the mid-Atlantic and Midwest, is asking federal regulators to approve a new framework for how data centers connect to the grid and buy power as demand surges.
According to the filing submitted to the Federal Energy Regulatory Commission, newly built data centers that do not add capacity could have their power curtailed when the grid nears dangerously low reserve levels relative to demand. The proposed Interim Resource Adequacy Service framework would require utilities to reduce power to data centers before taking steps that could disrupt service for residential and commercial customers.
PJM also plans to create a large-load registry to track data centers and their actual electricity use, and it would bar these new facilities from participating in a critical power auction that PJM links to higher utility bills throughout its footprint.
PJM warns that its system is facing reliability threats from data center demand exceeding capacity. In its filing, PJM projected 32 gigawatts of new demand between 2024 and 2030, with 30 GW expected to come from data centers, and it noted the price of power is set to rise more than 60% in its service area.