AI data centers in the US may face power cuts under PJM reliability proposal

The largest US power grid operator has proposed curtailing electricity supply to certain new large power users, including AI data centers, during grid emergencies beginning in June 2027, as surging demand threatens to outpace available generation capacity.

The proposal targets facilities that will fail to secure sufficient independent or contracted power supplies. PJM Interconnection will develop and maintain a Large Load Registry by detailed site, service areas, and whether they bring their own supply for better load management during capacity shortages.

“During capacity shortages, new Large Loads that do not bring their own generation by June 1, 2027, and have not otherwise secured supply, will be subject to curtailment prior to deployment of Pre-Emergency Load Management. This will create a regional framework for curtailment. In PJM’s suite of Emergency Procedures, Load Management resources are paid to reduce consumption during extreme grid conditions to relieve strain on the system,” stated the company.

PJM Interconnection defines Large Loads as the end-use customer load that has a cumulative peak load quantity of at least 50 MW at a single site behind one or more delivery points/points of interconnection within a one-mile radius.

The company forecasts that the New Large Loads are forecasted to increase by an estimated 70 GW by 2038, while some 15 GW of electricity-generating resources have retired since 2022.

“PJM’s proposal marks a significant shift by making electricity access conditional for some large new data centers during grid emergencies. It reflects the growing gap between AI-driven power demand and the pace of new generation and transmission, signalling that grid reliability is becoming as important as computing capacity,” said Pareekh Jain, CEO at EIIRTrend & Pareekh Consulting.

High risk for new builds

While PJM coordinates the wholesale electricity grid across 13 states, including Delaware, Illinois, Indiana, Kentucky, Maryland, etc., and the…