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ARTICLE · 27 MARCH 2025

Coming Soon? Rules For Co-Locating Data Centers And Generators In PJM

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Some of the biggest questions—and opportunities—facing the electric power sector in 2025 revolve around data centers and how to power them.

United StatesEnergy and Natural Resources
Foley Hoag LLP
Foley Hoag LLP
Aaron Lang
Aaron Lang
Zachary Gerson
Zachary Gerson
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Some of the biggest questions—and opportunities—facing the electric power sector in 2025 revolve around data centers and how to power them. The U.S. Department of Energy projects that the share of the nation's electricity consumed by data centers will skyrocket from 4.4% in 2023 to 12% in 2028. With endemic delays affecting the growth of the nation's generation, interconnection, and transmission capacities, many data center developers are considering "co-locating" generators behind-the-meter to power their facilities. Yet those plans have raised significant questions regarding how co-location arrangements will be regulated at the federal and state levels. This week, we expect the Federal Energy Regulatory Commission ("FERC") to begin to weigh in, as proceedings concerning co-location get underway.

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