Top Pa. utility regulator warns data center demand threatens electricity reliability
Pennsylvania's Public Utility Commission has warned that increasing data center development threatens electricity reliability across the state and the PJM region, with demand projected to exceed supply by 2027. Governor Josh Shapiro has issued an executive order restricting development, while the legislature has not yet passed related bills despite calls for a moratorium. Local residents in Watts Township are also opposing development without strict ordinances.
Pennsylvania's Public Utility Commission (PUC) Chairman Steve DeFrank issued a stark warning Monday regarding the future reliability of electricity supplies in Pennsylvania and surrounding regions. DeFrank stated that the rapid growth in data center development is projected to cause electricity demand to outpace anticipated supply, putting the state "at an energy crossroads." This warning followed an independent analysis by Synapse Energy Economics, which found that the regional grid coordinated by PJM Interconnection could fail to meet reliability standards as early as 2027, with risks worsening significantly by 2030.
The PUC Chairman emphasized the urgent need for action, stating that the "status quo is not sustainable" and calling for PJM and Pennsylvania to develop an energy strategy to match supply with demand. State Senator Gene Yaw (R-Lycoming County) had previously voiced concerns about potential blackouts due to electricity shortages. The General Assembly, however, adjourned without passing any significant data center legislation, despite discussions of over 100 planned projects.
Governor Josh Shapiro, who had initially promoted data center development, abruptly reversed course on August 18, condemning parts of the industry and issuing an executive order to restrict development. Concurrently, calls for moratoriums on data center construction have emerged from both parties in the Legislature, though none have yet garnered sufficient support to pass and receive the Governor's signature. The Synapse study's "severe" scenario indicated that new data center demand in the PJM region could surpass Pennsylvania's current annual electricity demand by 2029-2030.
Amidst these statewide concerns, local residents in Watts Township, Pennsylvania, represented by figures like Daniel Welliver, continue to oppose data center projects, advocating for the implementation of strict local ordinances to manage development.