PJM board outlines plan for integrating data center grid loads

PJM Interconnection announced Friday a comprehensive plan to address the challenges of integrating new data centers and other large power users onto the grid while maintaining system reliability.

The PJM Board of Managers’ plan requires new large power consumers to either bring their own generation capacity or enter a framework that subjects them to early curtailment during high-demand periods.

This decision follows an accelerated stakeholder process that produced 12 proposals, with the board incorporating ideas from multiple submissions into its final plan.

Key components of the plan include significant load forecasting improvements, increased state involvement, creation of an accelerated interconnection track for state-sponsored generation projects, and immediate initiation of a backstop generation procurement process to address short-term reliability needs.

“This decision is about how PJM integrates large new loads in a way that preserves reliability for customers while creating a predictable, transparent path for growth,” said David Mills, PJM Board Chair and Interim President and CEO. “This is not a yes/no to data centers. This is ’How can we do this while keeping the lights on and recognizing the impact on consumers at the same time?’”