Energy Department Wants Data Centers to Stop Draining the Grid During Brutal Heat Wave

Key Points:

• The U.S. Department of Energy has issued an emergency order allowing PJM, the regional grid operator for 13 states and Washington, D.C., to require data centers and other large power users to switch to their backup generators during a severe heat wave to prevent blackouts.
• This directive aims to leverage over 35 gigawatts of unused backup generation capacity nationwide, equivalent to powering about 26 million homes, as electricity demand surges due to high temperatures and widespread air conditioner use.
• PJM, which manages grid operations but does not own power plants, covers a region with the highest concentration of data centers, whose energy-intensive operations have increased amid the AI boom; however, there are concerns that running backup generators, often diesel or natural gas-powered, could worsen local air pollution.
• The emergency order excludes critical facilities such as hospitals, 911 centers, and water treatment plants and will remain in effect through July 7; PJM has similar authority but has not yet needed to activate it during this heat wave.
• PJM anticipates electricity demand may peak on July 2, potentially breaking the 2006 summer record, underscoring the urgency of utilizing all available backup power to maintain grid reliability and avoid blackouts.