The largest U.S. power grid operator, PJM Interconnection, will begin curtailing power to data centers during peak demand periods starting in 2027. This measure is a response to the rapid growth of data centers, which are increasingly straining the electricity grid. Projections indicate that by 2035, data centers will consume four times the amount of electricity they do today. AI
IMPACT This energy curtailment policy could significantly impact the expansion and operation of AI data centers, potentially increasing costs and limiting growth in regions served by PJM.
RANK_REASON Policy change by a major US power grid operator impacting data center energy supply. [lever_c_demoted from significant: ic=1 ai=0.7]
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