US Energy Secretary orders PJM to shift data centers onto backup diesel as grid nears record peak

US Energy Secretary Chris Wright signed Federal Power Act Section 202© emergency orders on June 30, 2026, directing grid operator PJM Interconnection to shift data centers and other large loads onto backup generators. The orders took effect as electricity demand across the mid-Atlantic approached an all-time high.

It is the third time in 2026 that the Department of Energy has invoked its emergency authority for PJM, which serves roughly 67 million people across 13 states and Washington, D.C. A prior order came on May 18. PJM forecast peak demand of about 166,147 MW on July 2, which would top the grid’s 2006 record of 165,563 MW.

The PJM emergency orders let the operator direct transmission owners to move any load of at least 50 MW onto backup generation, typically diesel, within 15 minutes of an emergency signal, and they waive normal power-plant emissions limits. Hospitals, 911 centers, water-treatment plants, air-traffic-control towers and defense facilities are exempted. The first curtailment order was later extended through July 6, with a paired order extended through July 7.

The orders read as an admission of how quickly AI-driven data-center load is outrunning the grid. As the heat-driven spike hit, PJM’s operating reserves fell to about 5,091 MW on July 2, down from nearly 11,000 MW the day before.

The diesel switch carries an air-quality cost. Officials acknowledged the emissions waiver could increase pollution from the backup units. Section 202© orders are designed to be short and rare; using one three times in seven months to keep the lights on around data centers is not routine grid management.

What this does not prove: the orders authorize curtailment as a last resort, but PJM has not confirmed that data centers were actually forced onto backup power during the window, and the long-term emissions impact of the waivers has not been quantified. How often the DOE reaches for the same lever will show whether this is a heat-wave stopgap or the new shape of a grid straining under AI demand.