US Power-Grid Plan Aims to Accelerate Data-Center Connections
(Bloomberg) -- Data centers that have lined up new electricity capacity for their facilities would get priority in connecting to the largest US power grid under a proposal by PJM Interconnection LLC.
PJM, which operates the 13-state grid serving one-fifth of Americans, proposed Tuesday to accelerate federal approval of so-called co-located power plants. The plan seeks to ensure adequate supply as massive data-center campuses gobble up unprecedented amounts of electricity, straining the system.
Not only has that surging demand driven up power prices, but the speed at which data centers are trying to connect to the grid has created reliability concerns. Mounting worries about affordability and energy security prompted the White House and 13 governors last week to propose an emergency power auction that would compel tech giants to bid for electricity supplies.
PJM’s plan aims to ensure that data centers secure new capacity, rather than direct existing generation away from the grid. Projects are eligible if they are co-located with new power plants or “increase the generation capability of an existing” facility, according to the filing.
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