PJM Interconnection, the largest U.S. regional grid operator, warned of a potential power supply crisis. Surging electricity demand from data center expansion and extreme heat triggered the alert. The operator reported a 20-year record instantaneous load of 168 GW in July across 13 states and the District of Columbia.
PJM projects a capacity shortfall of approximately 7 GW per year starting in June 2028. To address the gap, the grid operator will hold an emergency capacity auction in September.
New proposed rules could take effect as early as mid-2027. These regulations include temporary power cuts for data centers that fail to secure sufficient capacity in market auctions. The move highlights increasing tension between massive new power demand and limited grid infrastructure.