PJM Interconnection, the operator of the largest power grid in the United States covering 13 states and serving over 65 million people, has introduced an emergency plan to secure 15 gigawatts of new electricity supply, as reported by Bloomberg. This move is a response to the growing demand from AI data centers, which has strained the regional grid. The proposal involves pairing proposed data centers with new power plants through bilateral negotiations.
The grid operator will start assessing interest from developers and generators next week, with the formal matching process scheduled from September 2026 to March 2027. The initiative aims to address potential shortages caused by the rapid growth of AI, which has exceeded earlier forecasts.
The increasing strain on national grids due to data centers has been a concern for some time. These facilities are reshaping regional power markets, impacting capacity costs in auctions and necessitating quick responses during peak periods. Spot power prices have already reached record levels of over $1,000 per megawatt-hour.
The demand from hyperscalers’ facilities in states like Virginia and Pennsylvania has been surpassing new generation additions, leading to projected shortfalls of 60 gigawatts over the next decade.
Despite the urgency of the 15 gigawatt proposal, there are delays in transmission projects that could postpone the full grid deliverability for the Crane Clean Energy Center until 2031, four years later than Constellation Energy’s target. This nuclear plant, with an output of around 800 MW, is close to readiness, prompting Constellation to seek waivers to expedite the process.
The decision to pursue 15 gigawatts of new capacity while delaying existing energy sources raises questions about the overall strategy. This target represents a significant amount of capacity, equivalent to several large nuclear or gas-fired plants coming online quickly. The response from developers to make firm commitments remains uncertain.
Overall, the article highlights the challenges faced by PJM Interconnection in meeting the demand for electricity from AI data centers and the need for strategic planning to address these issues effectively.