Energy Dept. Orders Data Centers to Use Backup Power

The Department of Energy has issued an emergency order allowing PJM, the grid operator for 13 states and Washington, D.C., to require data centers and other large customers to switch to their own backup generation during a brutal heat wave hitting the central and eastern United States.

The order targets strain on the power grid from extreme heat and rising data center demand. Energy Secretary Chris Wright authorized PJM to direct heavy power users to rely on backup power as a last resort before potential blackouts. The directive is in effect until 11:59 p.m. on Friday. It estimates more than 35 gigawatts of unused backup generation available nationwide, enough to power roughly 26 million homes.

The National Weather Service has warned of a heat wave through the July 4 weekend with temperatures ranging from 95 to 105 degrees. Millions of people using air conditioners are expected to push the grid to its limits. PJM applied for the emergency authorization last weekend in anticipation of the heat wave.

Data centers have become major power consumers amid the AI boom. These facilities require massive amounts of electricity to power and cool servers used for training and running AI models, cloud computing, and other digital services. PJM covers several mid-Atlantic states, including Illinois, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, and Virginia—home to the world’s largest concentration of data centers.

PJM is a regional transmission organization that balances supply and demand, operates wholesale power markets, and coordinates grid planning. It does not own power plants or power lines but acts as the “air traffic controllers” of the power grid. The order does not apply to customers serving critical needs like hospitals, 911 call centers, water treatment facilities, defense sites, or air traffic control facilities.

Backup generators often run on diesel or natural gas, raising pollution concerns. Some experts are concerned that the facilities’ backup generators could increase air pollution in nearby communities, as noted by The New York Times. PJM told Gizmodo that the order allows it to direct local utilities to order data centers and other large-load customers to use backup power only under specific emergency conditions.

PJM has been granted similar authorization before during extreme hot and cold weather events, most recently during a May heat wave and Winter Storm Fern in January. PJM says it has not had to use the directive so far. Earlier this week, PJM said it expected electricity demand to peak on July 2 at about 166,147 MW, which could surpass its all-time summer record from 2006.

Chris Wright emphasized the need for reliable power. “Maintaining affordable, reliable, and secure power in the PJM service territory is non-negotiable,” Wright said in a press release. “Currently, there are tens of gigawatts of readily available backup generation that have remained largely untapped,” he said in the order.