PJM’s Power Shortfall Puts Data Center Growth in Focus

PJM, a regional grid operator, is short 6.8 GW of power capacity for the 2028/29 delivery year, creating urgency around how to accommodate rapidly growing large electricity consumers like data centers. The grid operator has launched an accelerated procurement process to secure additional generation while developing broader rules for large-load customers. For data center operators, PJM's decisions determine whether projects can secure needed power, what generation they must provide themselves, and their long-term electricity costs. PJM's approach reflects lessons from its first attempt to address large load growth through stakeholder input, which produced 12 competing proposals but no consensus, leading the board to set policy direction directly rather than relying solely on the stakeholder process.