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Utility Regulator Warns Data Centers Threaten Electricity Reliability

Utility Regulator Warns Data Centers Threaten Electricity Reliability

September 16, 2026

(The Center Square) – The future reliability of electricity supplies in Pennsylvania and nearby regions is being put at risk by data center development, the head of the state Public Utility Commission (PUC) warned Monday (Sept. 14, 2026).

By Ford Turner, Pennsylvania Reporter for The Center Square
Republished with editing by Travels With The Post

As a result, the agency added, its projections for power demands could exceed anticipated supply.

“Pennsylvania is at an energy crossroads,” PUC Chairman Steve DeFrank claimed in a media release. “Data center development brings significant opportunities, but that growth cannot come at the expense of the families and businesses that already depend on reliable and affordable electric service.”

Data center development proposals have taken off in Pennsylvania over the past few years. Dozens of projects are being discussed or planned.

The trigger for DeFrank’s warning was an independent analysis, conducted by the consulting firm Synapse Energy Economics. It looked into whether sufficient electricity would be available in the future.

Photo by Andrey Metelev on Unsplash, used under license

Conclusions from the Study

The Synapse study found that, starting in 2027, the regional grid of which Pennsylvania is a part may fail to meet “reliability planning standards” set by PJM Interconnection. PJM is an Audubon PA-based regional transmission organization, which coordinates wholesale electricity movement in Pennsylvania, 12 other states, and the District of Columbia.

PJM maintains a “load forecast” for future use of electricity in the region. Beyond 2027, and possibly by 2030, its modeled reliability risk is anticipated to be substantially worse than the current standard.

The study cited by DeFrank additionally includes a “severe” scenario. It projects that new data center demand in 2029 and 2030 alone across the PJM region would surpass the current annual electricity demand of all of Pennsylvania.

“This analysis sends a clear warning: electricity demand and supply are moving out of balance, and the status quo is not sustainable.” DeFrank says. “We need urgent action at PJM, and a broader Pennsylvania energy strategy, that makes sure our supply of electricity keeps pace with demand.”

Politicians Voicing Their Concerns

Similar warnings have been issued repeatedly by those who follow electricity matters.

Republican Sen. Gene Yaw of Lycoming County said 18 months ago that “we probably are going to have some blackouts, brownouts” and “we are going to have times when the power that we need is not there.”

On Aug.18, Democratic Gov. Josh Shapiro – who formerly was a strong promoter of data center development – abruptly reversed course. He criticized much of the industry, and issued an executive order to put restrictions on development.

There also have been some calls in the Legislature from both political parties for moratoriums on development. None appear yet to have gained enough traction to pass the full Legislature and win Shapiro’s signature.

DeFrank claims time is important.

“The changes highlighted in this report are not decades away,” he says. “The reliability pressures emerge during the next several years, and the decisions being made now will determine how prepared we are to meet them.”

The Center Square is part of a network of U.S.-based newsrooms that report on state- and local-level government activity. Travels With The Post republishes news articles from its Pennsylvania edition. Find other articles here.

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Our local news reporting includes articles about state, county, borough, township, and village government decisions and activities within, or that affect residents of, Montgomery, Berks, and Chester PA counties. It also includes Traffic articles about private and public transportation issues. Find more government articles here.

Additional Reading

  • “New Morgan Borough rezones 132-acre parcel to create ‘data center overlay district’;” WFMZ-TV, Allentown PA; Sept. 14, 2026
  • “Data Center Site Developers Looking at PA Farmlands;” The Center Square, Pennsylvania; May 28, 2026
  • “Grid Managers Plan ‘Course of Action’ on Affordable, Reliable Power for Consumers and Data Centers,” Travels With The Post, Pottstown PA; Jan. 17, 2026
  • “With More Data Centers, Problems Possible for Stable Grid;” The Center Square, Pennsylvania; May 12, 2025
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The PCTV Network. PCTV, headquartered in Pottstown, provides local television programming in western Montgomery, northern Chester, and eastern Berks counties.

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Pottstown Scoop. A daily e-mailed newsletter, also available online, that covers Pottstown and the Pottsgroves. Its news items are usually brief and quickly read.

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