The Data Center Boom Could Trigger Blackouts

The country’s largest electrical grid operator, PJM Interconnection, plans to power new data centers that it knows it doesn’t have the capacity for — prompting an energy watchdog to warn of heightened blackout risks.

AWS Data Center

PJM Interconnection has seen windfall profits from shouldering energy-draining data centers, at a multibillion-dollar cost to consumers. (Noah Berger / Getty Images via Amazon Web Services)


The independent watchdog for the country’s largest power grid operator has issued a “regulatory grenade” asking the federal government to intervene amid PJM Interconnection’s plans to power data centers it knows it doesn’t have the capacity for — despite acknowledging the heightened risk of blackouts. This comes as PJM has seen windfall profits from shouldering energy-draining data centers, at a multibillion-dollar cost to consumers.

Last week, the monitor overseeing PJM filed a complaint with the nation’s top electric utility regulator, warning of unreliable service for its sixty-five million customers across the Midwest and mid-Atlantic. Monitoring Analytics asked the Federal Energy Regulatory Commission to pause connecting larger artificial intelligence–powering data centers to its grid until PJM can ensure “reliable, economic, and environmentally acceptable” service and guarantee that the growing data center energy burden won’t produce unnecessary blackouts.

“The logic is simple. The question is clear,” the complaint reads. “If PJM has an obligation to provide reliable service . . . is it just and reasonable for PJM to add new loads that it cannot serve reliably? The answer to that question is no.”

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