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Last Update: 10/27/2026 at 5:34 AM EST
Data Centers and the Power Grid
Coverage from Fortune, AOL, and others
Data centers can add substantial electricity demand, raising questions about how quickly power systems can connect new facilities, supply their loads and maintain reliable service.
The effects span capacity and utility planning, grid constraints and wholesale prices, as well as measures such as demand response and on-site backup generation. PJM Interconnection and the Mid-Atlantic illustrate how system operators and regulators may respond when demand and available supply are strained, including emergency authorization for large customers to use backup power. The broader subject is how electricity systems accommodate data-center loads and allocate the costs and reliability responsibilities they create.
Looking Back
142 Day Timeline
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History
10/05/2026
The main new development is that lawmakers, including Frank Pallone, have urged FERC to strengthen PJM’s proposals, linking data-center rules more directly to consumer-cost concerns.
All Articles86 articles
Important
PJM Interconnection and insurers report weather-driven curtailment and losses, while climate studies quantify high heat and flood risks for data center capacity.
6/29/2026 • Water & Cooling • General
PJM's 2028/2029 capacity auction cleared at its $325 per megawatt-day price cap as U.S. data-center demand outpaced generation and transmission additions.
9/17/2026 • Power Procurement & Grid • General
The US Department of Energy authorized PJM Interconnection on July 14, 2026, to direct eligible backup resources at large-load sites during Level 3 emergencies in the PJM region.
8/16/2026 • Power Procurement & Grid • General
DOE authorized PJM during a heat wave to require data centers across multiple states, including Pennsylvania, to use backup generators with permitting waivers for reliability.
7/15/2026 • Power Procurement & Grid • General
PJM issued emergency demand-response orders during a heat wave to prevent outages as transmission congestion and generator outages reduced reserve margins in the Mid-Atlantic and Midwest.
7/3/2026 • Power Procurement & Grid • General
PJM and Dominion Energy managed a sudden 3,000-megawatt data-center disconnection after an Ashburn transmission fault, while PJM and NERC develop reliability standards.
7/28/2026 • Power Procurement & Grid • General
PJM Interconnection reported a 6.8-gigawatt capacity shortfall on July 14 as data center demand outpaced generation across Virginia and its 13-state territory.
9/6/2026 • Power Procurement & Grid • General
PJM, SPP, and ERCOT experienced record or near-record July demand during extreme heat, with data center growth intensifying grid planning pressures across the United States.
8/4/2026 • Power Procurement & Grid • General
The Energy Department has authorized PJM Interconnection and Southwest Power Pool since May to direct data centers and other large users onto backup generation during regional heat emergencies.
7/31/2026 • Power Procurement & Grid • General
PJM and other U.S. ISOs issued emergency grid alerts as data centers and broader demand growth tightened power reserves during hot, humid weather.
7/27/2026 • Power Procurement & Grid • General
Consumer advocates and Republican governors met at an EPA event as PJM Interconnection reported capacity-market charges where data centers contributed nearly 40% of the total.
7/25/2026 • Power Procurement & Grid • General
PJM reported a reliability imbalance after a Northern Virginia transmission line fault caused about 3 GW of data center load to drop between 7:55 and 8:00 a.m.
7/23/2026 • Power Procurement & Grid • General
Dominion Energy and PJM reported that an Ashburn, Virginia transmission fault triggered more than 3 GW of hyperscale data center load to disconnect and transfer to backup power within seconds.
7/23/2026 • Power Procurement & Grid • General
Monitoring Analytics quantified data centers as a major driver of PJM capacity charges while PJM missed reliability targets despite maximum-price capacity auctions.
7/20/2026 • Power Procurement & Grid • General
Monitoring Analytics and PJM reported data-center-driven demand raising PJM capacity charges in the June 2028 to May 2029 auction while PJM sought backstop procurement for reliability shortfalls.
7/15/2026 • Power Procurement & Grid • General
PJM released annual auction results on June 30, projecting $6.3 billion in added electricity costs over three years driven by data-center peak power demand across 13 Eastern states and DC.
7/15/2026 • Power Procurement & Grid • General
On July 2, PJM Interconnection issued emergency alerts during a heat wave but did not order power cuts to data centers in Northern Virginia, avoiding planned generator-based contingency.
7/3/2026 • Power Procurement & Grid • General
DOE approved PJM Interconnection emergency authority from July 1 to July 3 to direct data centers and other large users to backup generators during record heat-driven demand in Ohio.
7/2/2026 • Power Procurement & Grid • General
DOE approved a PJM Interconnection request to potentially require Virginia data centers to run backup diesel generators during extreme-heat demand peaks.
7/1/2026 • Power Procurement & Grid • General
Federal and state officials scheduled July 23 talks on PJM reforms as AI-driven data center load growth raises PJM prices and capacity costs.
6/4/2026 • Power Procurement & Grid • General
DOE issued Emergency Order No. 202-26-23 on May 18, 2026, enabling PJM to direct data-center backup generation during Level 3 alerts in the PJM region.
5/21/2026 • Power Procurement & Grid • General
PJM released a white paper proposing reliability-focused power market design changes as large-load data centers expand across its US territory.
5/10/2026 • Power Procurement & Grid • General
PJM Interconnection said grid strain from data center demand and delayed generation additions requires market design changes that may curtail power to new large-load customers during peaks.
5/10/2026 • Power Procurement & Grid • General
PJM electricity capacity strain tied to AI data center demand has increased power costs for Ohio and other PJM-region manufacturers, with PJM forecasting supply shortfalls starting in 2027.
7/7/2026 • Power Procurement & Grid • General
PJM's independent market monitor reported on August 24 that data center load contributed materially to higher wholesale prices and capacity revenues during the first seven months of 2026.
8/27/2026 • Power Procurement & Grid • General
On Aug. 4, PSEG Power said it was exploring long-term data-center power contracts through PJM's reliability backstop process across the PJM region.
8/5/2026 • Power Procurement & Grid • General
Exelon reported on July 30, 2026, in Chicago that screened high-probability data center load fell to 11 GW as PJM capacity constraints persisted.
7/31/2026 • Power Procurement & Grid • General
Joseph Bowring of Monitoring Analytics reported data centers caused 38% of PJM Interconnection's latest capacity auction charges and urged a FERC-filed September backstop auction.
7/20/2026 • Power Procurement & Grid • General
PJM reported a $325/MW-day capacity-clearing price as New York and Pennsylvania actions tied to rising utility rates intensified opposition to AI data center construction.
7/16/2026 • Power Procurement & Grid • General
PJM Interconnection reported a 2028/2029 capacity auction shortfall and plans a September FERC backstop procurement as Virginia data center load grows.
7/15/2026 • Power Procurement & Grid • General
PJM stakeholders approved a reliability backstop procurement plan for a near-term capacity shortfall, targeting FERC review and a September auction to support data-center load growth.
7/2/2026 • Power Procurement & Grid • General
Monitoring Analytics asked FERC to require Mara Holdings to keep Long Ridge generation in PJM markets if the agency approves the proposed $1.5 billion sale tied to growing data center load.
6/1/2026 • Power Procurement & Grid • General
DOE issued an emergency Federal Power Act section 202(c) order for PJM Interconnection to curtail backup-equipped large loads for three hot-weather days starting May 18 in Maryland and Virginia.
5/19/2026 • Power Procurement & Grid • General
Interesting
Monitoring Analytics projects PJM data center demand will raise electricity customer prices by over $23 billion by 2028, highlighting grid allocation and peak-demand pricing challenges.
7/18/2026 • Power Procurement & Grid • General
A Dominion Energy transmission-line equipment failure briefly disrupted power serving Northern Virginia data centers on July 22, prompting automatic backup generation and regional electrical fluctuation monitoring.
7/31/2026 • Power Procurement & Grid • General
Ting Labs said about 3 GW of Data Center Alley demand in northern Virginia disconnected Wednesday, destabilizing the power grid for several minutes.
7/24/2026 • Power Procurement & Grid • General
PJM and regional utilities reported record July peak demand during extreme heat, while demand-response and backup-generation arrangements were cited as limiting brownout risk.
7/15/2026 • Power Procurement & Grid • General
PJM issued emergency load management and maximum generation alerts during extreme East Coast heat, while DOE authorized PJM backup generation at data centers.
5/18/2026 • Power Procurement & Grid • General
Synapse Energy Economics told Pennsylvania regulators that planned data center expansion could cause repeated PJM power shortages by 2030 as generation retirements exceed new supply.
9/14/2026 • Power Procurement & Grid • General
On Thursday, PJM Interconnection asked federal regulators in Washington, D.C., to approve rules curtailing new large data centers before households during regional power shortages.
8/17/2026 • Power Procurement & Grid • General
During 2025 and 2026, FERC, PJM Interconnection, and state regulators reassessed large data-center load forecasts and infrastructure cost commitments across the PJM region.
9/1/2026 • Policy & Utility Planning • General
U.S. grid operators identified rapid data center disconnections as a growing reliability risk during Aug. 18 grid discussions across Western and Eastern power systems.
8/26/2026 • Policy & Utility Planning • General
PJM Interconnection said on July 27, 2026, that the PJM region could add 70 GW of large-load demand by 2038 and needs new reliability measures.
7/29/2026 • Policy & Utility Planning • General
PJM reported that a July 22, 2026 transmission disturbance in Northern Virginia caused data centers to transfer more than 3 GW to backup power within minutes.
8/25/2026 • Policy & Utility Planning • General
During a heat dome, the U.S. Department of Energy issued a 2026 emergency order enabling PJM to direct large data centers toward onsite backup generators to protect grid capacity.
7/3/2026 • Policy & Utility Planning • General
FERCs December 2025 order to PJM adds non-firm interconnection and dedicated on-site generation pathways as PJM forecasts 30 GW of new demand by 2030.
6/9/2026 • Policy & Utility Planning • General
U.S. Energy Department authorized PJM to require data centers to use onsite backup power during an extreme heat wave across 13 states and Washington, D.C.
7/2/2026 • Power Procurement & Grid • General
Frank Pallone urged FERC in Washington, D.C., today to strengthen PJM's proposed data-center power reforms amid rising capacity costs and projected demand growth.
9/28/2026 • Power Procurement & Grid • General
PJM Interconnection faced record power demand during July 2 heat, as AI data center load intensified grid reliability stress across multiple US RTO regions.
7/26/2026 • Power Procurement & Grid • General
PJM Interconnection and the Trump administration authorized emergency measures during an extreme heatwave, requiring data centers to activate backup generation through July 3.
7/1/2026 • Power Procurement & Grid • General
PJM Interconnection received a U.S. Department of Energy emergency order on an ongoing heatwave to require backup generators through July 3, affecting AI data centers.
6/30/2026 • Power Procurement & Grid • General
PJM Interconnection filed a Federal Energy Regulatory Commission proposal to fund new power plants and restrict service for data centers lacking dedicated energy supplies across its Mid-Atlantic region.
8/17/2026 • Power Procurement & Grid • General
PJM Interconnection proposed requiring data centers across its territory from Washington, D.C., to Chicago to use backup generation during future grid emergencies.
8/13/2026 • Policy & Utility Planning • General
PJM proposed to FERC a large-load capacity and curtailment framework for data centers across its 13-state territory, beginning in June 2027.
8/5/2026 • Policy & Utility Planning • General
PJM Interconnection reported near-capacity-auction record pricing around $325 per megawatt-day in a reliability-shortfall year driven by rising data-center power demand.
7/14/2026 • Policy & Utility Planning • General
Belden Brick reported higher capacity charges in Sugarcreek, Ohio as PJM capacity prices surged in 2025, driven by regional data-center electricity demand growth.
7/7/2026 • Policy & Utility Planning • General
PJM Interconnection forecasts record peak electricity demand during a heat wave as data-center growth increases congestion and reserve costs, while QTS withdraws a Virginia project filing.
7/2/2026 • Policy & Utility Planning • General
On June 30, 2026, PJM Interconnection members voted on non-binding backstop procurement and curtailment options to address data center-driven electricity demand growth.
6/30/2026 • Policy & Utility Planning • General
FERC plans a July 23 technical conference with PJM to resolve tariff and jurisdiction responsibilities for data center load growth under the Federal Power Act.
6/22/2026 • Policy & Utility Planning • General
The Public Utilities Commission of Ohio asked FERC in 2026 to limit PJM's proposed post-2027 large-load power requirements to data centers and cryptocurrency miners.
9/3/2026 • Policy & Utility Planning • General
PJM filed a Reliability Backstop Procurement proposal with FERC on July 31 to address a 6.8 GW capacity shortfall caused partly by expected large-load growth across the Mid-Atlantic region.
8/26/2026 • Policy & Utility Planning • General
PJM began reviewing large-load reliability requirements after Northern Virginia data centers transferred nearly 3,800 megawatts to onsite generation during a July 22 transmission disturbance.
8/12/2026 • Policy & Utility Planning • General
PJM submitted proposals to federal regulators requiring large loads across its 13-state territory to secure new capacity or face curtailment beginning in June 2027.
8/8/2026 • Policy & Utility Planning • General
PJM proposed Monday a large-load registry for data centers and other facilities across its 13-state region to prioritize electricity reductions during shortages.
7/30/2026 • Policy & Utility Planning • General
Dominion Energy and PJM reported a transmission line outage in northern Virginia caused over 3 GW of data center load to drop offline on Wednesday, with backup power transfer and voltage disturbances extending to Chicago.
7/23/2026 • Policy & Utility Planning • General
The White House urged PJM Interconnection governance reform as FERC scheduled a technical conference on PJM stakeholder processes amid AI data-center driven electricity demand growth.
7/22/2026 • Policy & Utility Planning • General
PJM Interconnection expects Thursday demand of about 166,147 MW and gained emergency authority to curtail data center and backup-generator load if needed.
7/2/2026 • Policy & Utility Planning • General
Monitoring Analytics warned PJM Interconnection that data center load is driving higher wholesale and capacity costs ahead of the June 2026 base residual auction.
5/16/2026 • Policy & Utility Planning • General
Monitoring Analytics reported sharp PJM wholesale price and capacity cost increases in the first quarter, citing AI data center load that tightens supply and stresses planning.
5/15/2026 • Policy & Utility Planning • General
PJM Interconnection released a five-year strategy on August 19 for managing data-center-driven electricity growth across the Mid-Atlantic while FERC reviews large-load tariffs and reliability responsibilities.
8/21/2026 • Policy & Utility Planning • General
PJM Interconnection is evaluating stronger computational-load reliability requirements after a July 22 Dominion Energy transmission fault disconnected about 3,800 megawatts of Northern Virginia data center load.
8/12/2026 • Policy & Utility Planning • General
PJM Interconnection reported a 2028-2029 capacity auction clearing at the 325 per MW-day cap as data centers increased forecast demand and reserve adequacy shortfalls persisted.
7/15/2026 • Policy & Utility Planning • General
PJM, ERCOT, and Illinois utilities face heat-wave demand peaks as data-center load growth increases reliability risk and planning scrutiny.
7/3/2026 • Policy & Utility Planning • General
PJM advanced a backstop reliability auction from March to September and urged member states to define auction cost allocation for new data center loads.
5/20/2026 • Policy & Utility Planning • General
A Pennsylvania Public Utility Commission-commissioned study found PJM could experience major resource-adequacy shortfalls from 2027 through 2030 as data-center demand expands across the region.
9/15/2026 • Policy & Utility Planning • General
DOE Secretary Chris Wright approved PJM air pollution standard exemptions for data centers using backup power during July 1-3 amid extreme heat.
7/4/2026 • Policy & Utility Planning • General
The Department of Energy authorized emergency power resources for Southwest Power Pool states on July 26 as extreme heat threatened blackouts and data center operations across the central United States.
7/31/2026 • Power Procurement & Grid • General
MISO, Minnesota utilities, and the Minnesota PUC address whether data centers drive peak summer power demand and approve safeguards for future very large customer costs.
7/1/2026 • Policy & Utility Planning • General
PJM Interconnection requested U.S. Department of Energy emergency authority to require data centers to use backup generators during a Maryland heat wave through Friday.
6/29/2026 • Policy & Utility Planning • General
The Pennsylvania Public Utility Commission released a Synapse Energy Economics study warning that data center growth could strain PJM reliability across Pennsylvania from 2027 through 2030.
9/15/2026 • Policy & Utility Planning • General
PJM Interconnection asked the Federal Energy Regulatory Commission to approve new capacity rules requiring data centers across its territory to fund power resources or accept potential emergency interruptions.
8/20/2026 • Policy & Utility Planning • General
PJM asked FERC on August 13 to authorize a framework requiring new loads of at least 50 MW, including data centers, to secure capacity or accept curtailment across the PJM region.
8/17/2026 • Policy & Utility Planning • General
PJM proposed on August 13, 2026, in the Mid-Atlantic region, new capacity and curtailment rules for large data-center loads facing regional supply shortages.
8/17/2026 • Policy & Utility Planning • General
Additional
PJM projected $6.3 billion higher power costs for 13 eastern states and D.C. over three years, citing data centers as the primary peak-demand driver amid New Yorks hyperscale moratorium.
7/22/2026 • Policy & Utility Planning • General
PJM Interconnection requested DOE action during a US heatwave after lawmakers and communities raised concerns about AI data center power and water strain.
7/3/2026 • Policy & Utility Planning • General
PJM asked the U.S. Department of Energy for an emergency reliability order that, during extreme heat, allows PJM to require data centers to switch to backup generators.
7/3/2026 • Policy & Utility Planning • General