APREX · EST. 2026
Emergency measures on a grid under pressure
PJM Interconnection, the power grid covering 13 states and Washington D.C., has enacted emergency orders to reduce electricity consumption in order to prevent the grid from collapsing. This is reported by Seeking Alpha, citing the grid operator's own alerts.
The backdrop is a power grid struggling to keep pace with surging demand. PJM estimates that peak load will increase by around 32 GW by 2030 – a volume equivalent to the electricity consumption of approximately 24 million households. Nearly all of this growth is attributed to the expansion of data centers and crypto mining facilities.
Capacity prices nine times higher
The consequences for end users are already being felt. In December 2024, capacity prices in PJM's market shot up from $30 to $270 per MW-day – a ninefold increase – driven by enormous demand from large digital consumers, according to available market data.
The political reaction was unmistakable. Pennsylvania filed a lawsuit against PJM, Maryland passed emergency legislation, and Virginia's governor called for the resignation of PJM's chief executive. New Jersey Governor Philip Murphy reportedly stated that "PJM has lost its grip," while Maryland Governor Wes Moore declared himself furious over the price developments.
The Department of Energy steps in
In May 2026, the US Department of Energy took an unusual step: PJM was granted formal authority to forcibly cut power to data centers and other large consumers with backup generators as a last resort to prevent rolling blackouts during periods of high demand and low reserve capacity. It is a clear signal of the gravity of the situation.
At the same time, the Federal Energy Regulatory Commission (FERC) has shown it is willing to crack down on abuse: a crypto mining company was recently hit with a $1.42 million settlement after diverting power plant capacity to its own mining operations rather than offering it to the PJM market, in violation of grid tariffs.
Texas experience as a warning
Experiences from Texas's own power grid, ERCOT, offer a preview of what can happen when crypto mining scales without adequate controls. ERCOT has documented at least 26 instances since 2023 in which large loads disconnected from the grid during routine voltage disturbances. In December 2022, approximately 400 facilities – including crypto and data center locations – dropped off the grid simultaneously, resulting in a load loss of around 1,700 MW.
ERCOT itself has concluded that crypto miners "have demonstrated inconsistent behavior during scarcity conditions" and that had voluntary disconnections not taken place on June 20, 2023, the grid would have been forced into emergency operations.
A double-edged resource
It is worth adding some nuance to the picture: crypto miners can in principle function as flexible load and contribute positively to grid stability. During a heat wave in July 2022, more than 95 percent of industrial Bitcoin facilities in Texas curtailed over 1,000 MW for extended periods. The company Riot Platforms reportedly earned more than $60 million from demand response over the course of a single year.
The problem arises when growth occurs faster than regulation and grid capacity can accommodate. PJM's emergency cuts are a symptom of the fact that the balance between flexibility and control has, for now, been lost.
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