PJM Interconnection, the largest regional grid operator in the United States, warned of a potential power supply crisis, citing surging electricity demand from data center expansion and extreme heat. The operator reported its instantaneous load surged to a 20-year record of 168 GW in July, straining the grid that serves 13 states and the District of Columbia.
To address a projected capacity shortfall of approximately 7 GW per year starting in June 2028, PJM announced it will hold an emergency capacity auction in September. The grid operator also proposed new rules that could take effect as early as mid-2027, which would include temporary power cuts for data centers that fail to secure sufficient capacity in market auctions. This highlights the growing tension between massive new power demand and the limits of existing grid infrastructure.