PJM, DOE Let Data Centers Exceed Emissions as Heat Threatens 166-GW Demand Record
Updated
Updated · POLITICO · Jul 1
PJM, DOE Let Data Centers Exceed Emissions as Heat Threatens 166-GW Demand Record
2 articles · Updated · POLITICO · Jul 1
Summary
DOE issued an emergency order after PJM’s request that would let data centers run backup diesel generators beyond normal emissions limits as extreme heat pushes the grid toward a projected 166-gigawatt peak Thursday.
That demand would top PJM’s 165-GW record from 2006 and far exceed the 156 GW the grid operator forecast in May, even though PJM says it still expects enough generation to avoid blackouts.
The order is a last-resort step in PJM’s updated emergency playbook for fast-growing data center load, especially in Virginia, where regulators have permitted more than 8,000 diesel generators and 3,790 more in 2025 alone.
Communities near those sites face the tradeoff: one-third of Virginia data centers sit within 500 feet of homes or schools, and residents already fear diesel fumes during the holiday heat wave.
The move underscores a broader collision between worsening heat extremes and surging AI-era electricity demand, with regulators struggling to keep pace as future data center loads are expected to dwarf current levels.
Who should bear the trillion-dollar cost of upgrading the nation's power grid to fuel the AI revolution?
As AI booms, must communities choose between reliable electricity and clean air, or can technology offer a way out of this dilemma?
Beyond the power grid, what are the hidden water and land costs of our insatiable demand for artificial intelligence?
Record Electricity Demand in PJM: AI Data Centers Trigger DOE Emergency Orders and Grid Crisis (2026)
Overview
In July 2026, the PJM Interconnection region faced a severe energy crisis triggered by an intense heat wave and a record surge in electricity demand. To prevent blackouts, PJM quickly recalled maintenance outages to bring all available power plants online and issued alerts to prepare for emergency demand response. As the crisis escalated, the Department of Energy granted PJM special authority to tap into backup power from large users like AI data centers, marking a new approach to grid management. This situation highlights the growing challenge of balancing rapid demand growth from data centers with the need to maintain reliable and affordable electricity for everyone.