FERC’s PJM Co-Location Order: A Turning Point for AI Data Center Power Strategy

On December 18, 2025, the Federal Energy Regulatory Commission (FERC) issued an order (Order) finding that the tariff administered by grid operator PJM Interconnection (PJM) is unjust and unreasonable as applied to generators serving co-located loads, including large AI data centers. Acting under Section 206 of the Federal Power Act, FERC directed PJM to revise its tariff on an accelerated schedule to establish clear, enforceable rules for these arrangements while preserving reliability and…
By: Steptoe & Johnson PLLC