The largest electricity grid in the United States is preparing a new balancing strategy as demand from data centers rises quickly. PJM Interconnection, the operator serving 67 million customers across a region stretching from Virginia to Illinois, says it may temporarily reduce power to very large users during shortages.
The move follows an auction that did not secure enough new generation capacity. PJM expects the first curtailments to begin in June 2027, and they would apply only to data centers using 50 megawatts or more.
Like long-running demand response programs used by industrial customers, the plan includes compensation for affected users and advance notice that could range from minutes to days, depending on grid conditions.
The policy is likely to accelerate a shift toward on-site power at new and existing data centers. Facilities that do not build their own energy systems may rely more heavily on backup generators, a route that is often more expensive to operate.
The broader context is clear: data centers are projected to consume far more electricity by 2035, adding pressure to grid planning, capacity auctions, and energy investment. As digital infrastructure expands, utilities and operators are being pushed to redesign how power is shared in real time.
In the years ahead, this approach could help shape a more flexible energy model for the digital economy.
