The Federal Energy Regulatory Commission has set a June 2026 decision date on proposed reforms to how large data center loads connect to the US electrical grid, following Department of Energy pressure to take a more active federal role in regulating AI-driven load additions. The proceeding directly affects PJM Interconnection, the largest US grid operator serving more than 65 million people across 13 states, which has projected it will run a full 6 gigawatts short of reliability requirements in 2027 if current load growth continues unchecked.
US data centers consumed 176 terawatt-hours of electricity annually as of 2026, representing 4.4 percent of total US electricity demand. More than 700 additional data center facilities are currently under construction across 38 states. Data center grid-power demand is forecast to rise 22 percent in 2025 and nearly triple by 2030 from current levels, according to S&P Global analysis.
US power plant developers plan to add 86 gigawatts of new utility-scale generating capacity to the grid in 2026, a record figure, driven largely by the data center load growth pipeline. Dominion Energy proposed its first base-rate increase since 1992 in February 2025, adding approximately $8.51 per month to typical household bills in 2026, citing capital requirements driven in part by large load additions to its service territory in Virginia.
NERC, the North American Electric Reliability Corporation, issued an alert in May 2026 following incidents of sudden load disruptions caused by data centers, recommending grid operators develop specific protocols for managing the large and variable power consumption patterns of hyperscale facilities.
Source: Utility Dive -- https://www.utilitydive.com/news/ferc-doe-data-center-interconnection-pjm-backstop-auction/817804/