PJM and FERC Impose 50MW Data Center Power Priority Rule

PJM will cut power to new 50-megawatt data centers before other grid users unless those facilities bring newly built power capacity, and FERC has directed every US grid operator to adopt equivalent rules. This structurally changes the economics and feasibility of new hyperscale AI data center construction across US grid regions.

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This rule fundamentally reshapes where and how hyperscale AI data centers can be built in the US by making grid-dependent facilities last in line for power during shortfalls unless they self-provision generation. Data center developers and hyperscalers face higher capex requirements to secure dedicated power, advantaging co-located generation assets and on-site power providers. Utilities and independent power producers with new generation capacity to sell or co-locate gain leverage. Grid-dependent colocation operators without self-generation face competitive disadvantage. The rule accelerates demand for small modular reactors, dedicated gas turbines, and long-duration storage as data center power solutions.