PJM Interconnection suspended its planned data centre power auction on 30 September 2026, after US regulators put its proposal to address a 6.8-gigawatt shortfall on hold until 28 February, Bloomberg reported.
Key points
- PJM planned a one-time auction to cover a 6.8-gigawatt power shortfall.
- The Federal Energy Regulatory Commission accepted PJM’s filing but suspended it until 28 February.
- The regulator raised issues involving cost allocation, collateral and exit rules.
- PJM’s independent watchdog warned that other consumers could bear costs if data centres fail.
PJM’s 6.8-gigawatt shortfall
PJM operates the biggest US electric grid. Its region has the country’s biggest concentration of data centres, and the artificial intelligence boom is driving its fastest growth in electricity demand in decades, Bloomberg reported. The grid operator had proposed a one-time auction to secure power for a 6.8-gigawatt shortfall.
The proposal followed an earlier auction in 2026 that failed to attract enough commitments to meet demand on days when electricity use peaks. The planned auction was aimed at adding supply more quickly in a region where demand from data centres has made that task more pressing.
The Trump administration had urged a one-time auction using 15-year contracts rather than annual agreements. State governors, utilities and investors had also criticised PJM’s response to rising demand, while the Federal Energy Regulatory Commission had pressed for changes to the grid operator’s approach.
PJM announced the suspension on 30 September, less than a day after the federal regulator ordered changes to its proposal. The decision pauses the auction PJM had planned to use for the shortfall, following an earlier procurement round that fell short of peak-demand requirements.
FERC suspends PJM filing until 28 February
The Federal Energy Regulatory Commission accepted PJM’s filing on 29 September but suspended it until 28 February. It also established a paper hearing on unresolved questions and encouraged the grid operator to submit a new filing addressing its objections, a step that could shorten the delay.
The commission agreed that PJM needed additional generation quickly and approved many elements of its plan. It said the proposal still needed changes to the allocation of costs, collateral requirements and rules governing exits before the procurement could proceed.
Commission Chairperson Laura Swett said in the order that the commission “will not be forced into accepting a deeply flawed, 11th-hour procurement mechanism with billion-dollar implications for consumers”. She said it was prepared to act promptly on a subsequent proposal that addressed its concerns and met the standards of the Federal Power Act.
Monitoring Analytics raises customer-cost risk
Monitoring Analytics, PJM’s independent watchdog, said the proposal could leave other electricity consumers bearing costs if data centres fail. That objection places the proposed auction’s payment terms alongside its ability to attract supply: the regulator’s cost-allocation concerns concern who would pay if new demand does not materialise as planned.
Commissioner Lindsay See addressed that issue in the order. “Existing customers should not be left paying costs attributable to new demand,” she said.
