The largest U.S. electrical grid operator, PJM Interconnection, plans to implement temporary power cuts for large data centers starting in June 2027 to prevent blackouts. This measure is a response to the rapidly increasing electricity demand from data centers, which are projected to quadruple their usage by 2035. Data centers exceeding 50 megawatts will be subject to these cuts, with compensation provided, and the move may encourage on-site power generation or reliance on backup generators. AI
IMPACT This decision highlights the growing strain on energy infrastructure due to AI's computational demands, potentially impacting data center expansion and operational costs.
RANK_REASON Policy change by a major grid operator impacting a significant industry sector. [lever_c_demoted from significant: ic=1 ai=0.7]
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