This week, a group of 12 members of Congress, led by Maryland Sen. Chris Van Hollen and Virginia Rep. Don Beyer, called on PJM Interconnection (PJM) to take immediate action to protect consumers from skyrocketing energy costs and mounting reliability threats due to data centers. In a letter to PJM’s Board of Managers, the lawmakers raised concerns that PJM weakened its Critical Issue Fast Path (CIFP) proposal, which would have required large energy users like data centers to reduce demand during shortages, and replaced it with a voluntary system that would raise household energy bills and risk increased outages.
They warned that without timely action, the rapid expansion of data centers across the Mid-Atlantic will continue to strain the region’s power grid and drive up electricity prices for households and local businesses. They also noted that data centers have already added over $16 billion in extra costs for consumers over the past two years, with total costs projected to reach $163 billion by 2033 if PJM fails to act.
“Data center energy demand is threatening to overwhelm the grid and drive up prices for millions of Americans,” the lawmakers wrote. “PJM must prioritize consumers and grid reliability over corporate interests.”
The letter outlines key reforms PJM should adopt to ensure affordable, reliable power for the 67 million people it serves:
- Reinstate a mandatory backstop requiring data centers to curtail use during shortages.
- Establish a large-load queue to ensure new facilities connect only when reliable capacity is available.
- Improve load forecasting and prioritize projects that add new generation and storage.
- Prioritize new clean energy generation and storage projects to add capacity to the grid.
“Without strong safeguards, PJM’s own projections show that unchecked data center demand could lead to rolling blackouts,” the lawmakers warn. “Our constituents should not be forced to subsidize wealthy corporations or risk unreliable service.”
The full list of signatories joining Senator Van Hollen and Congressman Beyer on this letter includes: Senators Tim Kaine (D-Va.), Cory Booker (D-N.J.), and Angela Alsobrooks (D-Md.); and U.S. Representatives Suhas Subramanyam (D-Va.), Glenn Ivey (D-Md.), Eleanor Holmes Norton (D-D.C.), Kweisi Mfume (D-Md.), Jan Schakowsky (D-Ill.), Sarah McBride (D-Del.), and Dwight Evans (D-Pa.).
Read the full letter here.