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PJM's proposed data center colocation policy drew criticism at FERC from Vistra…
Brief
Utility Dive's March 27, 2026 briefing covers grid stress, policy debate and rapid data center growth. At FERC, PJM's data-center colocation proposal was sharply criticized by Vistra and the Data Center Coalition, which warned colocated onsite generation still faces curtailment risk. Winter Storm Fern revealed interregional transmission shortfalls and extreme price divergence — some hubs spiking into the “hundreds of dollars per MWh” while adjacent areas saw negative prices, underscoring calls for expanded interregional transfer capacity. Offshore, Coastal Virginia Offshore Wind has started producing electricity from a single 14.7-MW turbine as part of a 2.6-GW buildout, though PJM transmission upgrades are needed for full deliverability. Meanwhile FERC data show roughly 50 GW of data center capacity online by end-2025, with MISO growing fastest (≈43% annual growth since 2020) and a notable industry shift toward onsite power (≈>33% of developers target 100% onsite by 2030).
Why it matters
PJM's proposed data center colocation policy drew criticism at FERC from Vistra and the Data Center Coalition, which warned on March 27, 2026 that “even a customer that brings sufficient co-located generation to meet its load cannot avoid curtailment risk.”
Key details
- Winter Storm Fern exposed transmission limits and price separation in late winter: some regions saw power prices of “hundreds of dollars per MWh” while neighboring areas experienced negative prices, a gap highlighted by Liza Reed of the Niskanen Center.
- Coastal Virginia Offshore Wind (CVOW) began delivering power with a single 14.7-MW turbine online now toward a 2.6-GW planned project; PJM transmission upgrades are required before the full fleet can be deliverable.
- FERC reports about 50 GW of data center capacity online at the end of 2025, with the Midcontinent ISO (MISO) posting the strongest growth — a 43% annual growth rate since 2020 — and over one-third of data center developers now planning 100% onsite power by 2030.