PJM Plan Makes AI Data Centres Prove Capacity For Firm Power
Data Center Knowledge reported that PJM is proposing a FERC-filed framework that would make new AI data centres secure generating capacity or face curtailments during grid shortages.
AI data-center projects in the PJM Interconnection region could lose the automatic path from grid connection to firm electric service under a July 27 board-approved framework that Data Center Knowledge reported is headed to the Federal Energy Regulatory Commission.
The proposal separates two steps that hyperscale developers have often treated as linked: getting connected to the grid and receiving reliable capacity service during shortages.
PJM projects roughly 70 GW of new large-load demand by 2038, while about 15 GW of generation has retired since 2022 and two recent capacity auctions cleared below the system reliability requirement.
Firm Service Depends On Capacity Proof
New large-load customers would need to bring enough generating capacity, sign adequate supply arrangements or accept a lower service status when the grid lacks resources.
Neil Osnato of Persistence Analytics Group said PJM is beginning to separate being connected from being firm, with new loads asked to earn the reliability product they once largely assumed.
The operating change would matter most for campuses that can obtain an interconnection position before their power supply plan is complete.
Under the proposed Interim Resource Adequacy Service, large loads that lack sufficient capacity would be curtailed before PJM turns to broader Pre-Emergency Load Management measures during shortage conditions.
June 2027 Framework Adds A Curtailment Track
The IRAS framework would begin June 1, 2027 if regulators approve it.
Customers seeking the same firm-service treatment as existing load would have to add enough new capacity to the system or remain under the interim service until adequate supply is available.
PJM also plans a Large Load Registry for major electricity users.
The registry would improve forecasting and give states better information for retail rate design and cost allocation, because PJM cannot create separate retail rate classes for data centres on its own.
Backstop Procurement Targets 6,831 MW Shortfall
The capacity package includes a one-time Reliability Backstop Procurement starting in September after the 2028-2029 Base Residual Auction produced a 6,831 MW shortfall.
Signed contracts for new supply, approved new generation and committed demand-side participation by large-load sites would reduce the procurement target, limiting the risk that PJM buys capacity already covered by other arrangements.
Demand response resources and distributed energy resources could qualify if developers show participating sites and long-term commitments.
Selected projects would still use the standard PJM interconnection process rather than receiving a special queue position through the backstop procurement.
The cost argument is explicit.
The board said existing consumers should not bear higher capacity costs caused by new large loads that do not bring or contract for the supply needed to serve them.
Rob Gramlich of Grid Strategies told Data Center Knowledge that ERCOT, MISO and SPP are considering similar policies.
For data-center builders, power procurement becomes part of project finance rather than a late utility step.
Dedicated generation, bilateral capacity contracts, storage, virtual power plants and flexible-load agreements can support firm service only if they can perform during grid stress, leaving the specific megawatt proof and FERC approval timetable as the next gating items.
