PJM proposes plan to buy more power for data centers

PJM Interconnection, the biggest U.S. grid operator, proposed on Thursday a backstop plan with federal regulators to procure more power generation to avoid outages from the surging electricity needs of data centers.

PJM, which manages the electricity for 67 million people in a territory that stretches from Washington, D.C. to Chicago, filed the proposal with the U.S. Federal Energy Regulatory Commission, which would have to approve any moves by the grid operator.

The proposal highlights a growing tension between the rapid expansion of data centers and the ability of the nation's power grid to keep up. If PJM cannot close its supply gap, millions of residents and businesses face an increased risk of blackouts, and the cost of new generation could be passed on to consumers who have no connection to the data center industry.