Data centers could face temporary power outages to prevent blackouts on the nation’s largest power grid

The nation’s largest power grid is struggling to cope with the onslaught of data centers. Now, after a failed bid to add power generation capacity, grid operator PJM Interconnection has announced that it will disconnect data centers and other large users during power shortages.

The decision comes as power grid operators are scrambling to generate electricity due to the breakneck pace of data center construction. By 2035, data centers are expected to use four times more power than they do today.

PJM will not begin making supply cuts until June 2027, and the cuts will only apply to data centers larger than 50 megawatts. Grid operators are conducting separate auctions for new generation capacity.

Like other demand response programs that have existed for decades and typically involve large users such as manufacturers, customers who lose power are compensated. Such programs typically provide customers with advance notice ranging from 30 minutes to several days, depending on anticipated demand.

This move will likely lead to many new data centers, and potentially existing data centers, installing their own on-site power supplies. Those that don’t will likely rely on backup generators, which are expensive to operate and tend to pollute more frequently.

Diesel generators are preferred by many data centers because the fuel is widely available and can be stored on-site. Federal regulations allow the use of such generators for up to 50 hours per year for demand response events and up to 100 hours per year for events such as emergencies and maintenance.

This week, Vantage Data Centers came under fire for apparently coordinating with Virginia environmental regulators, casting doubt on a report that said its diesel backup generators could pose tens of millions of dollars a year in health risks to people living near its 96-megawatt data center in northern Virginia.

PJM has come under fire in recent months over how it managed large new users, including new generation capacity and data centers. The grid operator’s territory stretches from Virginia to Illinois and covers 67 million customers. Wholesale electricity prices nearly doubled last year, and PJM’s independent market monitor blamed much of the increase on data centers.