CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, JANUARY 27, 2026

FERC’s New Order on Data Center Co-Location: What Utilities Need to Know

Data Center

The Order intends to help reshape how large loads—especially data centers—connect to the grid in the face of massive load growth from artificial intelligence (AI) hyperscalers.

January 26, 2026
Stephen J. Humes - Gravel2Gavel Construction & Real Estate Law Blog

On December 18, 2025, the Federal Energy Regulatory Commission (FERC) issued a pivotal order to PJM Interconnection, the nation’s largest regional wholesale power grid operator running the transmission system in the Mid-Atlantic region. The Order intends to help reshape how large loads—especially data centers—connect to the grid in the face of massive load growth from artificial intelligence (AI) hyperscalers.

At FERC’s monthly open meeting, the commissioners unanimously approved the Order, finding that PJM’s existing tariff does not adequately address the issue of co-locating large loads with data centers and electric generation. The Order was issued in FERC Docket Nos. EL24-49-000 et al., can be found at this link.

Mr. Humes may be contacted at stephen.humes@pillsburylaw.com


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