PJM plans temporary power cuts for large data centers to avoid blackouts

In short: The biggest U.S. grid operator says it will temporarily cut power to some large data centers during electricity shortages, starting in 2027.

What happened

PJM Interconnection, the operator of the largest electrical grid in the U.S., said it plans to reduce or cut electricity to certain big power users when the grid is under stress. The goal is to prevent wider blackouts.

The policy is aimed at data centers that use 50 megawatts of power or more. A data center is a building full of computers that run online services, including many AI tools. It is like a warehouse for computing, but it can use as much electricity as a small city.

PJM said it will not start these “curtailments” until June 2027. PJM is also planning another auction to add more power generation after a recent auction did not bring in enough new supply.

This kind of program is similar to “demand response,” which has been used for decades. In demand response, big customers agree to use less power during peak times, and they get paid for it. PJM said affected customers would be compensated, and they may get notice ranging from about 30 minutes to a few days.

Why it matters

Data centers are growing fast, and they are expected to use much more electricity over time. If large data centers are asked to shut off, they may switch to on-site generators, often diesel. That can keep services running, but it can also increase local air pollution and fuel costs.

Source: TechCrunch AI