AI Data Centers Trigger Third Federal Grid Emergency, Sending Bills Up and Air Quality Down

On June 30, Energy Secretary Chris Wright signed two emergency orders under Section 202(c) of the Federal Power Act. The orders direct PJM Interconnection to force AI data centers onto diesel backup generators.

The orders were issued in response to grid stress caused by the energy demands of AI data centers. The article reports that forcing data centers onto diesel generators will lead to higher electricity bills and poorer air quality. The report emphasizes that this is the third federal grid emergency for the same grid this year, suggesting a recurring pattern.

The use of diesel generators as a stopgap measure carries environmental and economic costs. No long-term solutions or grid upgrades were mentioned in the report.