Federal Regulators Reject PJM’s Proposed Data Center Power Rules
Federal energy regulators rejected two PJM proposals designed to manage rising electricity demand from data centers. The decision raises questions about grid reliability, power shortages, and who will pay for needed generation and infrastructure, including Maryland customers.
Federal energy regulators rejected two proposals from PJM Interconnection intended to address the growing electricity demand of data centers. One proposal would have required large facilities to reduce or shut off power during shortages unless they secured sufficient new generation, while the other would have created a specialized electricity auction for data center power needs.
Regulators approved new reporting requirements for large electricity users but sent PJM back to revise its plans after raising concerns about implementation and cost allocation. PJM has warned that the region, which includes Maryland and 12 other states, could face power shortages as early as 2027, intensifying concerns among state and county policymakers about the broader effects of data center development.