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ARTICLE · 02 JANUARY 2026

FERC Issues Anticipated Order On Data Center Co-Location In PJM Region

Jones Day
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As power demand surges, on December 18, 2025, the Federal Energy Regulatory Commission ("FERC" or "Commission") announced a much-anticipated order laying the groundwork for new rules governing the co-location of large loads alongside electric generation in the Pennsylvania-New Jersey-Maryland ("PJM") region

United StatesEnergy and Natural Resources
Jeffrey Schlegel
Jeffrey Schlegel
Jim Beh
Jim Beh
Dickson Chin
Dickson Chin
Kit Rockhill
Kit Rockhill
Melissa Vandewater
Melissa Vandewater
Elizabeth Dominguez Yaeger
Elizabeth Dominguez Yaeger
Brooke M. Proto
Brooke M. Proto
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As power demand surges, on December 18, 2025, the Federal Energy Regulatory Commission ("FERC" or "Commission") announced a much-anticipated order laying the groundwork for new rules governing the co-location of large loads alongside electric generation in the Pennsylvania-New Jersey-Maryland ("PJM") region.

FERC defines "co-located load" as "end-use customer load that is physically connected to the facilities of an existing or planned [generator] on the [generator's] side of the Point of Interconnection." While the order applies to any co-location arrangement, as the Commission news release stated, its intent is to "facilitate service of AI-driven data centers and other large loads."

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