The PJM Interconnection, America’s largest power grid serving 67 million customers across 13 states, is under increasing pressure as surging demand from data centers and AI applications outpaces the construction of new power plants.
Electricity bills in parts of the PJM territory, which spans from Illinois to New Jersey and Virginia to Tennessee, are expected to rise by over 20% this summer, News.Az reports, citing Reuters.
The rapid growth of energy-intensive AI chatbots and data centers, particularly in Northern Virginia’s “Data Center Alley,” has created unprecedented demand.
Challenges are compounded by aging power plants retiring faster than new ones come online, delays in approving new projects, and local opposition and supply chain issues hampering construction. PJM has paused new plant applications and delayed capacity auctions, exacerbating the supply crunch.
Pennsylvania Governor Josh Shapiro has threatened to pull the state from PJM unless costs are lowered and infrastructure development speeds up. Meanwhile, leadership changes at PJM reflect the grid’s turmoil.
PJM forecasts an additional 32 gigawatts of demand by 2030, nearly all driven by data centers, underscoring the urgent need for faster expansion to prevent price spikes and potential blackouts.
