Data centers may face temporary power cuts to prevent blackouts on largest US grid

The PJM Interconnection, serving 67 million customers across the eastern US, will begin curtailing power to large data centers (50+ megawatts) starting June 2027 to prevent grid blackouts as data center electricity demand is projected to quadruple by 2035. This policy shift will force data centers to invest in expensive on-site power generation infrastructure—such as diesel generators—increasing operational costs, environmental liabilities, and regulatory risks while contributing to wholesale electricity price increases that have nearly doubled over the past year. For IT organizations and CIOs, this represents a critical infrastructure dependency that requires immediate capital planning, alternative energy strategy development, and geographic diversification to mitigate supply disruption risks.