Department of Energy Issues Emergency Order for Data Centers Amid Heat Wave

The Department of Energy has issued an emergency order allowing PJM, the grid operator for 13 states and Washington, D.C., to require data centers and other large customers to utilize their own backup power as a heat wave affects the central and eastern United States. Energy Secretary Chris Wright authorized PJM to direct heavy power users to rely on their backup generation as a last resort to prevent potential blackouts. The department estimates that over 35 gigawatts of unused backup generation is available nationwide, sufficient to power approximately 26 million homes. The National Weather Service has warned of temperatures between 95 and 105 degrees during the heat wave, which is expected to increase electricity demand significantly. PJM, which operates without owning power plants or lines, helps balance supply and demand across the power grid. The emergency order does not apply to critical services such as hospitals and emergency response centers. PJM has previously received similar authorizations during extreme weather events, but has not yet needed to implement this directive.