PJM's interconnection fight amid 12 GW data center growth

PJM’s independent market monitor filed a complaint urging the Federal Energy Regulatory Commission to clarify PJM’s authority to delay interconnection of large new data centers until sufficient generation and transmission exist.

• Main action: The monitor requests FERC clarification that PJM can delay interconnection of large data centers pending adequate generation and transmission; the filing argues unchecked data center growth is inflating transmission costs and driving billions in higher capacity prices. The filing comes as PJM’s board prepares its own interconnection proposal.
• Background and supporting details: Enverus Intelligence® Research (EIR) estimates ~12 GW average load growth in PJM by 2035, driven primarily by data center expansion; an EIR analysis of 94 large-load tariffs across 36 utilities finds that large loads with on-site generation can better manage peaks via demand response and optimized battery storage. The note cites AEP Ohio (speculative requests fell by >50% after a new rate), SPP’s High Impact Large Load process, and Alberta’s proposed Bill 8 as examples of policy/tariff approaches to prioritize or accelerate interconnection for loads providing their own generation.