Top utility regulator warns data center demand threatens electricity reliability
Pennsylvania's Public Utility Commission chairman has warned that data center development is threatening the reliability of electricity supplies in the state and surrounding regions, with demand projected to exceed supply. This warning is based on an independent analysis and has prompted Governor Josh Shapiro to issue an executive order restricting development. Despite calls from legislators for moratoriums, no significant data center legislation has passed.
The future reliability of electricity supplies in Pennsylvania and neighboring regions is at risk due to extensive data center development, warned Pennsylvania Public Utility Commission (PUC) Chairman Steve DeFrank. DeFrank stated that projections indicate electricity demand will soon outstrip anticipated supply, an imbalance highlighted by an independent analysis from Synapse Energy Economics.
The study found that the regional grid, managed by PJM Interconnection across 13 states and D.C., will fail to meet its reliability planning standard by 2027, with risks escalating significantly by 2030. DeFrank emphasized the urgency, calling for action from PJM and a comprehensive Pennsylvania energy strategy to ensure supply keeps pace with demand.
While warnings about electricity shortfalls are not new, with Republican Sen. Gene Yaw of Lycoming County having voiced similar concerns, the General Assembly recessed without passing data center legislation. However, Governor Josh Shapiro, who previously promoted data center development, abruptly reversed his stance on August 18, condemning parts of the industry and issuing an executive order to restrict new development. Despite bipartisan legislative calls for moratoriums on data center construction, none have gained enough support to pass both chambers and receive the Governor's signature.
DeFrank stressed that these reliability pressures are imminent, not decades away, noting that new data center demand in the PJM region for 2029 and 2030 alone could exceed Pennsylvania's current annual electricity consumption. Decisions made now will be crucial in preparing for these challenges.