America’s electricity grid is under severe strain as federal regulators have rejected a proposal that would have required data centers to reduce power consumption during shortages. The decision came just three days before the Department of Energy issued an emergency order to prevent blackouts across a regional grid serving 67 million Americans.
The move highlights a growing conflict between Washington’s push for artificial intelligence and the electricity infrastructure needed to support it. It also raises fundamental constitutional questions about federal authority over power generation, distribution, and rationing rather than leaving these responsibilities to states and localities.
On October 15, the Federal Energy Regulatory Commission (FERC) rejected key provisions of a proposal from PJM Interconnection, the nation’s largest regional grid operator. The proposal would have established an emergency mechanism to reduce power demand from new large load customers—such as data centers—before cutting off residential consumers during critical shortages.
The commission argued that PJM had exceeded its authority by placing obligations directly on eligible customers who generally fall under state jurisdiction. FERC also questioned why certain large users would be disconnected before others in an emergency.
Despite rejecting the proposal, FERC approved a separate registry of large electricity customers to track facilities’ locations, power requirements, and other details. PJM Interconnection forecasts that electricity consumption by data centers in its service area could triple by 2030, reaching approximately 29 gigawatts. The company warned that the current grid system faces imminent risks due to high demand, extreme temperatures, and ongoing maintenance during the autumn outage season.
This week, the Department of Energy authorized emergency measures for the same region, allowing PJM to dispatch power plants beyond normal limits and direct large customers—including data centers—to activate backup generators. The order took effect on October 13 and remains in place until temperatures decline by October 16.
The sequence of events reveals a stark tension: federal regulators blocked plans to restrict data centers during shortages just days before emergency orders were issued to prevent blackouts.
