An assault of data centers has proven too much for the biggest electricity system in the United States to handle. PJM Interconnection, the grid’s operator, has now stated that it will shut off service to data centers and other major customers during power outages after an auction to increase generating capacity failed.
The decision comes as grid operators are rushing to meet power demand amid the rapid pace of data center construction. Data centers are predicted to consume four times as much electricity by 2035 as they do now.
Only data centers with 50 megawatts or more will be subject to PJM’s supply reductions, which won’t begin until June 2027. Another auction for additional generating capacity is being held by the grid operator.
Customers that experience a power outage will receive compensation, much like other demand response systems that have been in place for decades and usually include large users like manufacturers. Depending on anticipated demand, these programs usually provide customers with 30 minutes to several days’ warning in advance.
Many new data centers, as well as possibly those that already exist, will probably be encouraged to install their own on-site power sources as a result of the change. Those who don’t will most likely rely on backup generators, which are often more expensive to operate and polluting.
Diesel generators are used by many data centers since the fuel is readily available and can be kept on-site. According to federal laws, these generators may be utilized for up to 50 hours annually for demand response events and up to 100 hours annually for maintenance and emergencies.
Vantage Data Centers faced criticism this week for what appeared to be cooperation with Virginia environmental authorities to cast doubt on a report that claimed diesel backup generators could be responsible for tens of millions of dollars in yearly health damages for residents of a 96-megawatt data center in Northern Virginia.