FERC approves PJM data-center registry, rejects curtailment plan

what happened

Newsmetry API reports that the Federal Energy Regulatory Commission (FERC) has allowed PJM Interconnection, the largest power grid in the United States, to start developing a data-center database on Monday. Rapid growth in the sector has lifted prices and raised reliability concerns across a system serving 67 million people.

In an order filed on Friday, FERC rejected key parts of PJM’s proposal to manage the new load by temporarily disconnecting server facilities during periods of high demand to help prevent blackouts. The approved registry may collect information on each facility’s energy suppliers, in-service dates, ramp-up schedules, backup generation, fuel sources and location.

FERC said PJM could submit a revised curtailment proposal, but would have to explain why data centers should be disconnected before other large electricity users. PJM expects data-center demand in its Midwest and Mid-Atlantic territory to triple by 2030, reaching about 29 gigawatts of capacity. With regional net supplies declining for years, PJM capacity costs have risen more than 1,000% since 2024, while a 6.8-gigawatt shortfall could contribute to blackouts.

In August, PJM proposed requiring new data-center customers of at least 50 megawatts to fund additional supplies covering their full electricity needs, or face disconnection during power emergencies. FERC rejected the core curtailment plan as beyond PJM’s authority. The same August filing also called for tracking data centers, about whose energy use the grid currently has limited information.

why it matters

The ruling gives PJM a tool to improve visibility into a fast-growing source of demand, but not immediate authority to disconnect data centers. Markets remain focused on regional capacity constraints, rising resource costs and connection rules for large users.

instruments