Federal Regulators Reject Proposal Allowing Mandatory Power Cuts to AI Data Centers During Grid Emergencies

The Federal Energy Regulatory Commission on October 9, 2026, rejected PJM Interconnection's proposal to allow mandatory curtailment of AI data centers and other large power users during grid emergencies, marking a significant setback for efforts to manage rapid growth in computing-driven electricity demand. The decision blocked PJM's Interim Resource Adequacy Service (IRAS) framework, which would have permitted data centers with 50 megawatts or more of capacity to connect to the grid without providing matching new generation, provided they accepted curtailment when capacity constraints threatened reliability.