AI Boom Strains U.S. Power Grid, Sparks Leadership Shakeup
The biggest power grid in America faces difficulties in meeting increasing electricity requirements from AI data centers which drives up summer costs and reveals fundamental operational problems.
PJM Interconnection which serves 67 million people across 13 states faces a growing power supply deficit because AI server power consumption exceeds new power plant development rates. Electricity prices throughout certain regions will increase by more than 20% this summer following a substantial rise in PJM's annual capacity auction results from last year. The upcoming capacity auction will occur this week with projected price increases.
The leadership crisis has resulted in a CEO departure and board chair removal and Pennsylvania Governor Josh Shapiro has threatened to remove the state from the grid.
The recent capacity clearing of 46 gigawatts at PJM has not matched the growth of smaller grids in Texas and California because of permitting delays and supply chain setbacks and community resistance. The region has experienced a total loss of 5.6 gigawatts because of power plant closures.
Data center demand primarily drives the growth in Virginia's "Data Center Alley" area. PJM predicts that 32 gigawatts of new power demand will emerge by 2030 with all of it coming from artificial intelligence infrastructure.
A PJM spokesman emphasized that every available megawatt represents a critical necessity.
Dominic Maley is an American journalist recognized for his sharp and insightful reporting on social and political issues. His work is known for its depth, integrity, and the ability to highlight critical societal concerns.