PJM power grid faces crisis as data centers strain aging infrastructure
PJM Interconnection, the largest power grid operator in the US, is struggling to meet surging electricity demand from new data centres. The challenge comes as the system faces its first-ever power reserve shortage in the coming years. Officials are now pushing for urgent changes to keep prices stable and avoid overburdening consumers.
The White House and state governors have called for extending price caps for another two years. Meanwhile, PJM's leadership warns that bold action is needed to support rapid growth across the region.
The surge in data centre demand has hit PJM at a difficult time. Aging infrastructure and an already tight power supply have made it harder to integrate new loads. Experts also warn that supply chain delays could stop new generation sources from coming online fast enough, creating a gap between planned capacity and actual construction.
PJM's board has proposed several measures to tackle the issue. These include improving power load forecasting, speeding up construction timelines, and repurposing existing plants. The operator also plans to submit formal proposals to the Federal Energy Regulatory Commission (FERC) to fast-track interconnection processes for new power plants. Under PJM's tariff rules, any major changes to transmission planning or resource adequacy must first be approved by FERC.
Stakeholders recognise the difficulty of balancing new demand with affordability. While officials consider capping power prices to protect consumers, generators oppose the move, arguing it would cut into their profits. PJM's Chief Operating Officer, Stu Bresler, stressed that decisive steps are necessary to sustain growth across the region and the country.
The situation has drawn attention from top levels of government. The White House and governors from PJM states have urged the operator to extend price caps for two more years. Their goal is to prevent sharp cost increases while ensuring reliable service for the 67 million people who depend on the grid.
PJM will now move forward with its proposals, awaiting FERC's review. If approved, the changes could help ease pressure on the grid and stabilise costs. However, delays in construction or regulatory hurdles may still leave the system vulnerable to shortages in the near future.
