The largest power grid in the US is struggling to cope with the data center onslaught. Now, after an auction to add more generating capacity fell short, grid operator PJM Interconnection said it would shut down data centers and other large users during power outages.
The decision comes as the breakneck pace of data center construction has grid operators scrambling to generate power. By 2035, data centers are expected to use 4 times more electricity than today.
PJM won’t begin curtailing supply until June 2027, and the cuts will only apply to data centers that are 50 megawatts or larger. The grid operator is holding another auction for new generation capacity.
Similar to other demand response programs, which have been around for decades and typically involve large users such as manufacturers, customers whose power is out will be compensated. Such programs typically give customers advance notice, ranging from 30 minutes to several days, depending on projected demand.
The move will likely push many new data centers — and potentially existing ones — to build their own on-site power sources. Those that don’t will likely rely on backup generators, which tend to be more expensive to run and often more polluting.
Multiple data centers they favor diesel generators since 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 this apparent coordination with Virginia environmental regulators challenging a report that said backup diesel generators could contribute tens of millions of dollars in annual health impairments for people living near a 96 megawatt data center in Northern Virginia.
PJM has come under fire in recent months for how it is handling new capacity and large new users, including data centers. The network operator’s territory stretches from Virginia to Illinois, covering 67 million customers. Over the past year, wholesale electricity prices have nearly doubled, and PJM’s independent market monitor blamed data centers for much of the increase.
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