PJM Proposes Mandatory Power Cuts for AI Data Centers to Prevent Grid Overload

According to PANews, PJM Interconnection, the largest grid operator in the U.S., today proposed adjusting its management system for large electricity consumers. Under the new framework, AI data centers will face supply cuts or mandatory grid exit during periods of electrical stress if they fail to secure sufficient power resources in advance. This measure aims to prevent widespread blackouts and avoid shifting capacity costs to residential customers.

PJM forecasts data center electricity demand in its service area will increase by approximately 70 gigawatts by 2038, while the region has lost about 15 gigawatts of generation capacity since 2022. The operator plans to hold a "reliability reserve procurement" auction in September to fill a 7-gigawatt gap, with costs borne by data centers. PJM is also pushing data centers to sign long-term power contracts with generators to secure energy supply.