Key facts
- The U.S. Department of Energy authorized PJM Interconnection to require data centers and other large electricity users to use backup power during a heat wave.
- The order is in effect from June 30 through July 3, 2026.
- Large loads are defined as sites with at least 50 megawatts of peak load.
- Backup resources include auxiliary generators, directly connected generation, and battery storage.
- The measure aims to prevent grid blackouts and ensure system reliability during peak demand.
Amidst a severe heat wave across the United States, the U.S. Department of Energy has issued an emergency order allowing PJM Interconnection, the nation's largest grid operator, to require data centers and other large electricity consumers to utilize their backup power resources. This measure, effective from June 30 to July 3, 2026, is designed to alleviate strain on the grid as power demand is projected to set records. The order permits PJM to direct backup generation, including generators and battery storage, at sites with at least 50 megawatts of peak load as a final measure before declaring an Energy Emergency Alert 3, which could lead to forced power shutoffs.
The action comes as PJM faces unprecedented demand due to extreme temperatures combined with long-term load growth from data centers, electrification, and manufacturing. The Department of Energy cited reliability warnings indicating that electricity demand in PJM is increasing at its fastest pace in years, primarily driven by data centers, while generator retirements and project delays are reducing available capacity. PJM had requested the authority, projecting tight reserves during peak demand periods, with forecasts indicating potential to exceed the grid operator's 2006 summer record.
The emergency authority aims to reduce the load on the main grid by shifting large facilities to their on-site backup power. This directive specifically excludes backup generation used for critical reliability or public-safety needs, such as defense, hospitals, and water treatment facilities. The order also mandates that affected resources comply with environmental monitoring and reporting requirements to the extent feasible. Alongside this order, the DOE issued a separate directive for PJM to dispatch specified generating units as needed to maintain grid reliability during the same period.