PJM Interconnection, the largest US power grid operator serving 65 million people across 13 states and the District of Columbia, has ordered data centers to generate their own electricity or face curtailment, in a directive issued January 16, 2026. Capacity auction prices have skyrocketed from $28.92 per megawatt-day in 2024/2025 to $329.17 per megawatt-day for 2026/2027, a more than tenfold increase in just two years. AI-linked data centers are projected to add tens of billions of dollars in additional system costs through the late 2020s, which without intervention would flow directly to households and small businesses. Under the new « Bring Your Own New Generation » (BYONG) framework, any facility adding 50 MW or more must supply its own incremental generation or accept curtailment risk. The 2027/2028 Base Residual Auction cleared 5.6% below the target reserve margin, and facilities without their own generation will be curtailed first during shortages. The reforms have backing from the Trump administration and governors across PJM’s territory.
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