PJM Grid Tells Data Centers to Bring Their Own Power or Face Blackouts
PJM Interconnection, the largest power grid in the US, has implemented reforms to curb data centers' massive energy consumption. The plan aims to stop data centers from dumping their enormous energy costs onto everyday consumers by creating a two-tier system: either generate your own power or face the risk of blackouts.
The number of AI-linked data centers is growing rapidly, and grid planners never anticipated this level of electricity consumption. As a result, capacity auction prices have skyrocketed - in 2024/2025, they sat at $28.92 per megawatt-day, but for the 2026/2027 cycle, that figure exploded to $329.17 per megawatt-day, a staggering 10x increase.
The PJM Interconnection's solution is called 'Bring Your Own New Generation' (BYONG), which requires any facility adding 50 MW or more of load at a single point of interconnection to either supply its own incremental generation or accept curtailment risk. This initiative includes an expedited interconnection track targeted for August 2026.
The reforms emerged from extensive stakeholder discussions and carry backing from both the Trump administration and governors across PJM's territory.