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DATA CENTER & POWER

PJM delays power procurement as regulators question who pays

PJM, the grid operator serving 13 states and Washington, D.C., postponed a planned process to secure additional electricity capacity after federal regulators required further proceedings.

October 1, 2026

THE DEVELOPMENT

What happened

The Federal Energy Regulatory Commission accepted PJM’s proposal for filing but suspended it for five months, with a February 28, 2027 effective date subject to further proceedings. PJM consequently did not launch procurement on September 30 and says the revised schedule remains undetermined. That effective date is not a promise of available electricity.

A central concern is how to assign costs to the new demand driving the need for additional supply, rather than shifting those costs to existing customers.

PREMIA VIEW

What this means for operators and investors

Data-center developers should reassess both the power-delivery schedule and their potential share of supply costs. Fiber owners should examine whether customer opening dates depend on this procurement before committing construction capital.

WHAT REMAINS UNCERTAIN

The revised procurement timetable, final cost allocation and implications for individual projects. The delay does not establish that every data center in PJM will open late.

DECISION QUESTIONS

Three questions stakeholders should answer now.

  1. 01
    Does the customer’s power plan depend on this procurement?
  2. 02
    Who bears additional power costs or delays under existing contracts?
  3. 03
    Which fiber expenditures can wait until power milestones are confirmed?

WHAT TO WATCH

What to watch next

PJM’s October 7 administrative update, revised filings and a new procurement schedule.

SOURCES

Reporting and primary materials.

Premia’s analysis reflects information available as of the publication date. Reported facts are attributed to the linked sources; the Premia View and decision questions are our analysis.

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