PJM Interconnection Considers Power Cuts to Data Centers to Prevent Blackouts
PJM Interconnection, the largest U.S. grid operator, is considering implementing emergency rules to temporarily cut power to data centers drawing 50 megawatts or more. This decision comes in response to a recent capacity auction that failed to meet its supply goal, leading to increased wholesale prices. The grid, which serves 67 million customers, is struggling to keep up with the growing demand from AI and crypto data centers. The proposed power cuts would involve data centers switching to backup generation during grid stress, a practice known as demand response.