PJM allowed to curtail data centers

PJM Interconnection received a U.S. Department of Energy emergency order on May 18 allowing it to curtail certain data centers and other large loads with backup generation during severe grid stress. The order was issued under section 202(c) of the Federal Power Act after PJM asked for authority a day earlier, citing atypically hot mid-May weather and the risk of an Energy Emergency Alert Level 3 across its system. (energy.gov) DOE said the order authorizes PJM to deploy backup generation resources at data centers and other major facilities, and to call on transmission owners and electric distribution companies to implement it as needed. The order is in effect from May 18 through May 20. (pjm.com) ### Which customers can PJM actually touch under this order? The May 18 DOE order covers backup generation resources at data centers and other major facilities, rather than the full universe of customer load on the PJM system. DOE’s 2026 orders page says PJM is authorized to deploy backup generation resources at those facilities, and PJM’s May 17 application said the grid operator wanted authority to direct data center customers and other large-load customers to use customer-owned backup generation facilities if needed. Utility Dive reported that the approval applies to data centers and other large loads that have backup generation. (energy.gov) That framing matters because the emergency tool is aimed at shifting those customers off grid supply and onto on-site generation, not imposing a broad retail cut across all consumers. ### What problem did PJM tell Washington it was trying to solve? PJM said in its May 17 filing that temperatures in the 90s were affecting parts of its region and that it needed authority to mitigate or avoid an Energy Emergency Alert Level 3. The filing asked DOE to let PJM direct deployment of customer-owned backup generation “as a last resort” during the hot-weather event. (energy.gov) DOE’s order said a statutory emergency existed within PJM’s service territory because of a shortage of electric energy, a shortage of generating facilities and other causes. (utilitydive.com) The department said issuing the order would meet the emergency and serve the public interest. ### Is this a brand-new power, or an extension of something PJM already had? DOE records show this was not the first 2026 emergency order tied to PJM and backup generation at large-load facilities. A separate DOE page says Order No. 202-26-06, issued on January 26, 2026, authorized PJM to direct backup generation resources at data centers and other large load customers to operate as a last resort before declaring an Energy Emergency Alert 3 or during one. (pjm.com) The May order appears to be a new emergency authorization tied to this week’s weather conditions and PJM’s fresh request on May 17. (pjm.com) DOE’s 2026 orders page says the current order was issued after that request and expires on May 20. ### Why are data centers central to this story? PJM has been warning for months that rapid large-load growth, especially from data centers, is changing reliability planning in its territory. Reuters reported in November 2025 that data centers were expected to account for nearly all of the 32 gigawatts of demand growth PJM forecast through 2030. (energy.gov) PJM stakeholders have also been working on rules to integrate data centers and other large-load customers while maintaining reliability. PJM’s stakeholder site said on March 26 that the grid operator and stakeholders advanced several components of a plan to streamline those connections. (energy.gov) ### What does the order require next? The Department of Energy said the order is effective through May 20, 2026, and PJM is authorized to call on its transmission owners and electric distribution companies to implement it as needed. PJM’s posted application and DOE’s signed order are available on PJM’s document site and DOE’s 2026 emergency-orders page. (energy.economictimes.indiatimes.com) After the order expires, the next public markers will be whether DOE issues another extension, whether PJM reports use of the authority during the May 18-20 hot-weather period, and whether the grid operator folds similar curtailment assumptions into its ongoing data-center connection process. (insidelines.pjm.com) Those next steps would be reflected in DOE order postings and PJM stakeholder filings. (energy.gov)