Data centers may face temporary power cuts to prevent blackouts on largest US grid

PJM Interconnection, operator of the largest U.S. electrical grid, will curtail power to data centers and large users during shortages, starting June 2027. The decision follows an auction for additional generating capacity that fell short. Data centers 50 megawatts or larger will be affected, and affected customers will be compensated. The policy is expected to encourage data centers to develop on-site power, but many may rely on diesel backup generators, which are costlier and more polluting. Vantage Data Centers recently faced criticism over its coordination with Virginia regulators regarding health impact studies of diesel generators. PJM has been criticized for rising wholesale electricity prices, which nearly doubled over the past year, partly due to data center demand.