The largest electrical grid in the U.S. is facing a significant challenge as data centers expand at an unprecedented rate. In response, PJM Interconnection, the operator of this vast network, has announced plans to curtail power supply to large data centers during periods of high demand.

This decision comes after an auction for additional generating capacity failed, highlighting the strain on the grid from data center growth. By 2035, it is predicted that these facilities will consume four times as much electricity as they do currently.

While power cuts won’t begin until June 2027, and only affect centers larger than 50 megawatts, the move could spur a rush for on-site power solutions. Many data center operators are likely to invest in backup generators or explore renewable energy options to avoid these interruptions.

The decision reflects broader concerns around the environmental impact of data centers and their growing role in driving up electricity prices. Critics argue that this move is necessary, but it also raises questions about the balance between technological progress and sustainability.