Story perspectives

PJM to Curtail Power for 50 MW+ Data Centers 2027

7/29/2026

Summary

Story summary

PJM Interconnection will curtail electricity to data centers of 50 MW or larger, starting June 2027, across Virginia-to-Illinois.
PJM filed two FERC proposals—a short-term backstop procurement and a registry for large-user electricity.
The latest capacity auction missed its reliability target by 6.8 GW, with a $325 per megawatt-day price cap.
PJM forecasts a 70 GW demand rise from customers, mainly data centers, by 2038, and will compensate curtailed users with 30-minute to days notice.

History

Historical Context

California’s 1996 electricity-restructuring law (AB 1890) opened its spot market, and by 2000 Enron’s manipulation drove wholesale prices up 800 % and triggered rolling blackouts that forced PG&E into bankruptcy in April 2001. The crisis prompted FERC’s 2005 Energy Policy Act reforms and demand-response rules, which PJM now applies by issuing curtailment notices to data centers over 50 MW.

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Story summary

PJM Interconnection will curtail electricity to data centers of 50 MW or larger, starting June 2027, across Virginia-to-Illinois.
PJM filed two FERC proposals—a short-term backstop procurement and a registry for large-user electricity.
The latest capacity auction missed its reliability target by 6.8 GW, with a $325 per megawatt-day price cap.
PJM forecasts a 70 GW demand rise from customers, mainly data centers, by 2038, and will compensate curtailed users with 30-minute to days notice.

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