PJM Interconnection, the operator of the largest electrical grid in the United States, plans to cut power temporarily to large data centers and other heavy users during shortages. The policy is scheduled to start in June 2027 and applies to facilities of 50 megawatts or more.
The move follows pressure from rapid data center construction, much of it tied to AI workloads. TechCrunch reports that PJM is also running another auction for new generating capacity after an earlier effort fell short.
Curtailment programs are not new. Large industrial customers have long been paid to reduce demand when grids are stressed, usually with advance notice. What is changing is the scale and speed of data center demand, which is forcing grid operators to decide how much flexible load these facilities must provide.
The policy could push more data centers to add on-site generation or rely more heavily on backup systems. That may improve reliability for operators, but it can also raise costs and emissions if diesel generators become the fallback during peak demand.