PJM Interconnection, the operator of the largest electricity grid in the United States, plans to temporarily cut power to large data centers during periods of electricity shortages as surging demand strains the grid, according to TechCrunch.
The report said the policy will take effect in June 2027 and apply to data centers consuming at least 50 megawatts of electricity. The move follows an auction that failed to secure enough new power generation to meet rising demand, driven largely by rapid expansion in artificial intelligence infrastructure.
The report said the new policy could encourage more data centers to install on-site power systems or rely on diesel backup generators, which are more expensive and can increase pollution.
PJM, which serves 67 million customers, has faced criticism as wholesale electricity prices have climbed alongside growing data center demand.
Related Tweet:
NEW POLL: Americans want guardrails on AI data centers.
— The Alliance for Secure AI (@secureainow) July 28, 2026
77% are concerned about higher electricity bills and deals cut without public input, while 71% support stricter rules or limits on new data center construction.
(per @americans4ri) pic.twitter.com/dj9FEylRAc
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