WHAT HAPPENS WHEN DATA CENTERS COME TO TOWN?

The independent watchdog for PJM Interconnection, the country's largest power grid operator, has been described as issuing a "regulatory grenade"! This refers to a formal complaint filed with the Federal Energy Regulatory Commission (FERC) in November 2025 by the watchdog, Monitoring Analytics.

The complaint asks the federal government to intervene and essentially pause the connection of large, energy-intensive data centers to the grid until PJM can ensure reliable service for its 65 million customers across 13 states and Washington, DC.

Key points regarding the complaint:

The Problem: PJM plans to power new data centers despite knowing it may not have the capacity to serve them reliably, raising the risk of blackouts.

The Request: Monitoring Analytics argues that it is not "just and reasonable" for PJM to add new loads that it cannot reliably serve, and wants FERC to affirm that PJM can reject such interconnections.

The Stakes: The watchdog warns of unreliable service and potential blackouts at a "multibillion-dollar cost to consumers," while PJM has seen substantial profits from shouldering these energy demands.

Please review the findings by Terry Nguyen and Ben Green from the University of Michigan HERE