December 14, 2025
Joe Rondone/Imagn Images
Gov. Josh Shapiro is opposing a push by Amazon, Google and Microsoft to dismiss a federal case that could determine how AI data centers connect to the electric grid. This file photo shows transmission lines in Tennessee.
Gov. Josh Shapiro is urging federal energy officials to consider comments from consumer advocates, state utility regulators and power companies before deciding a case that could determine how AI data centers and other large electricity users connect to the grid.
The Shapiro administration filed a motion Wednesday with the Federal Energy Regulatory Commission opposing a request to dismiss the case. It was made by groups representing electricity generators and Amazon, Google, Microsoft and other hyperscalers that plan to build data centers across the country.
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"The commission must not take an extraordinary approach that would close the record before parties have an opportunity to be heard," the filing by Shapiro's Office of General Council says. "It would be an error for the commission to deviate from its usual practice of assessing a complaint based on a fully developed record, particularly given the matters of such critical impact to affordable, reliable service throughout PJM."
PJM Interconnection is the regional transmission organization that manages the electricity market and transmission for Pennsylvania, 12 other states from New Jersey to Illinois and the District of Columbia. The organization is in the midst of an expedited process to determine new rules to govern when data centers can connect to the grid.
PJM's independent market monitor proposed a set of rules that would bar data centers, which can consume as much power as a small city, from connecting unless there is sufficient generating and transmission capacity to serve them without blackouts affecting other customers.
The monitor, Market Analytics, a Pennsylvania company that serves a watchdog for PJM, filed a complaint with FERC last month asserting that its proposal – effectively a moratorium on new data centers – is the only way PJM can meet its mandate to protect reliable and affordable electricity access across its region.
The Data Center Coalition and PJM Power Providers Group argued the case should be dismissed on procedural grounds and that requiring stakeholders to submit briefs would be "a distraction and a waste of time when the industry and nation can least afford it."
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Data centers provide the computing power to train artificial intelligence. Proponents, including President Donald Trump, say improving AI is a matter of national security and cast it as a technological race with China.
Data center development across PJM's territory has contributed to rising energy costs and peak demand that is forecast to grow by 20% over the next decade, according to PJM's forecast.
Growing demand has already driven up the price that generating companies get for keeping power stations on standby to meet peak demands. Despite an agreement between the Shapiro administration and PJM capping prices until next year, energy costs for consumers have increased and are projected to continue rising.
The Critical Issue Fast Track process PJM is using to determine new rules for data centers drew a dozen proposals that were presented and voted on by stakeholder groups at a meeting of the organization's board of managers Nov. 19. Although the votes are only advisory for PJM's board of managers, which will make the final decision, none reached the two-thirds majority threshold to be approved.
"The solutions offered by PJM and most stakeholders simply assume that PJM must agree to add large loads to the system when the loads cannot be served reliably," Monitoring Analytics' FERC complaint states.
The independent monitor argues PJM has the authority to make data centers wait, and in order to protect reliability and affordability, that is the only viable solution.
Nearly 40 companies, government agencies and individuals have filed motions to intervene in the case. FERC has set a deadline Monday for comments.
Pennsylvania Capital-Star is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact Editor Tim Lambert for questions: info@penncapital-star.com.
