Four US governors have proposed a joint plan with the Data Center Coalition, an industry group, that favors approving connections for data centers if they guarantee their own power supply. The plan aims to expedite permitting and siting for data operations, allowing tech firms like Amazon Web Services, Google, Microsoft, and Meta to build new facilities without delay.
The proposal, which has garnered interest due to the governors' critical stance on PJM's operations but desire for data center expansion in their states, offers a fast-track approval process for both the data centers and the power sources they would build. This could bolster PJM's reliability and potentially boost reliance by new data centers on natural gas.
The idea was raised during a hearing held by PJM, which is grappling with soaring demands and seeking federal approval later this year to hasten permit reviews. The proposal outlines an eight-page plan that relies on states to expedite permitting and siting for the data operations.
Data centers require around-the-clock electricity and brief dips can cost millions in revenue. The fast-track proposal aims to accommodate lucrative investment from tech firms, while also shielding consumers from price spikes as data centers come online. A measure proposed by the DCC would extend or maintain the current capacity charge set by PJM for another year, which could shield customers from price spikes.
However, some analysts have raised concerns about how states will review and decide to fast-track projects. Paul Sotkiewicz, a former chief economist for PJM, warned that short-circuiting processes could backfire on politicians if not done properly.
The proposal has sparked debate over who should lose power when the grid is stressed, with some arguing that data centers should be interrupted first or last. Monitoring Analytics president Joseph Bowring emphasized that the grid cannot reliably serve its customer base and urged PJM to prioritize continuity of service.
The plan from DCC and the governors is one of several proposals being considered by PJM as it seeks public comment on a rule change aimed at adding suppliers to the grid. The Federal Energy Regulatory Commission will decide whether the change is lawful and in the public interest, with a written request planned for submission in December.
				
			The proposal, which has garnered interest due to the governors' critical stance on PJM's operations but desire for data center expansion in their states, offers a fast-track approval process for both the data centers and the power sources they would build. This could bolster PJM's reliability and potentially boost reliance by new data centers on natural gas.
The idea was raised during a hearing held by PJM, which is grappling with soaring demands and seeking federal approval later this year to hasten permit reviews. The proposal outlines an eight-page plan that relies on states to expedite permitting and siting for the data operations.
Data centers require around-the-clock electricity and brief dips can cost millions in revenue. The fast-track proposal aims to accommodate lucrative investment from tech firms, while also shielding consumers from price spikes as data centers come online. A measure proposed by the DCC would extend or maintain the current capacity charge set by PJM for another year, which could shield customers from price spikes.
However, some analysts have raised concerns about how states will review and decide to fast-track projects. Paul Sotkiewicz, a former chief economist for PJM, warned that short-circuiting processes could backfire on politicians if not done properly.
The proposal has sparked debate over who should lose power when the grid is stressed, with some arguing that data centers should be interrupted first or last. Monitoring Analytics president Joseph Bowring emphasized that the grid cannot reliably serve its customer base and urged PJM to prioritize continuity of service.
The plan from DCC and the governors is one of several proposals being considered by PJM as it seeks public comment on a rule change aimed at adding suppliers to the grid. The Federal Energy Regulatory Commission will decide whether the change is lawful and in the public interest, with a written request planned for submission in December.