PJM Interconnection, operator of the largest power grid in the United States spanning 13 states and serving more than 65 million people, has launched an emergency proposal to secure 15 gigawatts of new electricity supply, according to Bloomberg. The move aims squarely at the surging AI data center demand, which has pushed the regional grid to its limits. The plan calls for bilateral negotiations to pair proposed data centers with new power plants.
PJM will begin gauging interest from developers and generators late next week, with the formal matching process running from September 2026 through March 2027. The grid operator described the initiative as a targeted response to potential shortages driven by the AI boom, which has accelerated load growth far beyond earlier forecasts.
We've been highlighting the growing strain on national grids like PJM for years now. Data centers are the dominant forces reshaping regional power markets, contributing heavily to capacity costs in recent auctions and forcing operators to scramble during winter peaks.
Spot power prices have already hit records above $1,000 per megawatt-hour…
Explosive demand from hyperscalers' facilities in Virginia, Pennsylvania, and surrounding states continues to outpace new generation additions With shortfalls of 60 GW over the next decade.
The timing of this emergency proposal, however, adds a layer of absurdity. Just weeks ago, PJM informed Constellation Energy that transmission project delays could push full grid deliverability for the restarted Crane Clean Energy Center, formerly Three Mile Island Unit 1, out to 2031. That is four years later than Constellation’s target of late 2027 for the roughly 800 MW nuclear plant, even as the facility itself nears readiness. Constellation is now seeking FERC waivers to speed things up.
PJM is scrambling for 15 GW of new capacity while delaying the bolting on of energy sources that are nearly ready to go? We're not exactly sure what the 4D-chess strategy is here.
The 15 GW target represents a significant slice of capacity roughly equivalent to over a dozen large nuclear or gas-fired plants coming online in short order. Whether developers will step up with firm commitments remains to be seen.