Federal energy regulators have rejected a proposal by a major regional grid operator to temporarily reduce power to large data centers during periods of supply shortages, handing authority over such decisions to individual states instead. The move by PJM, which oversees the electric grid for parts of the East Coast and Midwest, had aimed to establish a framework for prioritizing energy distribution during tight supply conditions. With the federal approval denied, states will now determine how to address potential power constraints, raising questions about how uniformly such measures might be applied across different regions. The decision underscores growing tensions between centralized grid management and state-level energy policies.
The nation’s energy regulators have shot down a bid from a regional grid operator to cut power to some large data centers during a supply shortfall — leaving the issue largely in the hands of states. Regional grid operator PJM, which manages the electric grid for several East Coast and Midwest states, proposed an ability...
