Pennsylvania and New Jersey governors join forces with data center industry group to push for self-sufficient power guarantees.
In a surprise move, four US state governors - Pennsylvania, Maryland, New Jersey, and Virginia - have teamed up with the Data Center Coalition, an industry trade group, to advocate for approvals of new data centers that can generate their own electricity. This joint proposal could benefit PJM Interconnection, the nation's largest electrical grid.
According to Pamela Quinlan, a principal at GQS New Energy Strategies, which represents the DCC, this "voluntary and heavily incentivized" plan offers a fast-track approval process for both data centers and their power sources. The idea was presented during a hearing held by PJM as it grapples with soaring energy demands and seeks federal approval later this year to speed up permit reviews.
Under the proposal, data centers would be required to generate power equal to their expected usage, which would then feed into PJM's regional grid, bolstering its reliability. Energy researcher Abraham Silverman noted that this strategy could also boost reliance by new data centers on natural gas.
However, critics argue that this approach may have unintended consequences, including increased reliance on fossil fuels and potential harm to local residents and governments. Paul Sotkiewicz, a former chief economist for PJM, expressed concerns about how states might "short-circuit" processes that affect these groups.
The proposal's specifics remain unclear, but it suggests that states would expedite permitting and siting for data operations. Data centers could generate power elsewhere in the same grid area approved by the state, without being tied to a specific location.
One concern raised by energy expert Joseph Bowring is who should lose power during grid stress, with some arguing that data centers should be interrupted first or last. Monitoring Analytics recommends ensuring the grid can guarantee continual service and reliability before allowing new connections.
The DCC-governors proposal is just one of more than a dozen plans being considered by PJM as it seeks public comment on a rule change meant to add suppliers to the grid. Federal regulators will ultimately decide whether this change is lawful and in the public interest.
				
			In a surprise move, four US state governors - Pennsylvania, Maryland, New Jersey, and Virginia - have teamed up with the Data Center Coalition, an industry trade group, to advocate for approvals of new data centers that can generate their own electricity. This joint proposal could benefit PJM Interconnection, the nation's largest electrical grid.
According to Pamela Quinlan, a principal at GQS New Energy Strategies, which represents the DCC, this "voluntary and heavily incentivized" plan offers a fast-track approval process for both data centers and their power sources. The idea was presented during a hearing held by PJM as it grapples with soaring energy demands and seeks federal approval later this year to speed up permit reviews.
Under the proposal, data centers would be required to generate power equal to their expected usage, which would then feed into PJM's regional grid, bolstering its reliability. Energy researcher Abraham Silverman noted that this strategy could also boost reliance by new data centers on natural gas.
However, critics argue that this approach may have unintended consequences, including increased reliance on fossil fuels and potential harm to local residents and governments. Paul Sotkiewicz, a former chief economist for PJM, expressed concerns about how states might "short-circuit" processes that affect these groups.
The proposal's specifics remain unclear, but it suggests that states would expedite permitting and siting for data operations. Data centers could generate power elsewhere in the same grid area approved by the state, without being tied to a specific location.
One concern raised by energy expert Joseph Bowring is who should lose power during grid stress, with some arguing that data centers should be interrupted first or last. Monitoring Analytics recommends ensuring the grid can guarantee continual service and reliability before allowing new connections.
The DCC-governors proposal is just one of more than a dozen plans being considered by PJM as it seeks public comment on a rule change meant to add suppliers to the grid. Federal regulators will ultimately decide whether this change is lawful and in the public interest.