Delaware is staring at a 1.2 GW “Project Washington” data center that could consume half the state’s annual load and push PJM-wide rates up, with NRDC projecting about $70 more per month for the average customer by 2028.
Lawmakers are responding with SB205, which would force any ≥30 MW load to get a Certificate to Operate based on ratepayer impact, economic benefit, and emissions, and strongly push data centers toward dedicated or self-provided generation.
The Public Service Commission has already opened a large-load tariff docket for ≥25 MW users to ensure grid upgrades and incremental costs hit hyperscale facilities instead of being socialized to households and small businesses.
Politically, there is cross-party support for shielding ratepayers, with nuclear highlighted as a preferred baseload option for data centers, echoing Microsoft’s Three Mile Island deal as a model for dedicated supply.
At the regional level, PJM is weighing rule changes that could require big data centers to bring their own power and address reliability risks from clustered AI and cloud growth, but stakeholder dynamics skew toward fossil generators and faster hookup timelines.
Local land-use controls are proving more fragile than state and regional energy rules, as seen in New Castle County’s stalled ordinance that raised fears of killing data center jobs and tax revenue.
The piece is worth a read for anyone planning large GPU builds in PJM, because it shows how fast policy is shifting to make hyperscale AI pay its full power and grid tab.
