PJM Interconnection, the largest U.S. power grid operator, faces unprecedented strain from AI-driven data center energy demand. This surge has caused capacity costs to skyrocket.
The operator warns of potential power shortfalls for its 67 million customers as soon as 2027. Leadership describes the current situation as untenable for maintaining grid reliability.
PJM is considering a fundamental overhaul of its electricity markets to manage the massive demand. New proposals would require technology companies to directly fund the power generation needed for their data centers.