PJM Proposes Two FERC Plans to Address Surging Data Center Power Demand

The largest grid operator in the United States, PJM Interconnection, has filed two separate proposals with the Federal Energy Regulatory Commission (FERC) aimed at securing additional power and managing the rapid growth of data center load across its 13-state footprint. The moves come as PJM projects that demand from large-scale loads could soar to 70 gigawatts by 2038, creating an urgent need to close the widening gap between available supply and projected consumption.

The first plan establishes a "reliability backstop procurement" process designed to match electricity supplies with data center power needs that have not been met through long-term contracting. Under the proposed timeline, the procurement would run from September 30 through October 21, with results released in December. PJM stated that the mechanism is necessary to address the shortfall revealed in its latest capacity auction, held last month, where power prices hit the auction's price cap of $325 per megawatt-day. The auction fell short of PJM's reliability requirement by approximately 6.8 GW, raising significant concerns about the risk of blackouts on the grid.

The second proposal calls for creating a mandatory registry for data centers and other large electricity consumers, enabling the grid operator to track their location and energy usage in real time. Under the plan, data centers without on-site generation could face temporary power shutoffs during periods of extreme grid stress to prevent rolling blackouts, though such measures would require approval from individual state governments. This proposal follows an incident earlier this month in which a large proportion of data center load abruptly disconnected from the PJM grid, causing a voltage disturbance that affected the entire network. PJM reported that more than 3 GW of power—roughly 3 percent of total demand at the time—was rendered offline, according to operational data.

Industry observers note that PJM's dual filing reflects the growing tension between the explosive growth of data center capacity and the limitations of aging grid infrastructure. The reliability backstop procurement, in particular, signals that traditional capacity markets may no longer be adequate to ensure stability as hyperscale facilities place unprecedented strain on transmission systems. The registry proposal, meanwhile, introduces a level of oversight that could reshape how data center operators plan their energy strategies, especially in regions where grid constraints are most acute.