PJM Warns of Grid Strain as Data Centers Drive Electricity Demand
PJM, the operator managing the power grid serving 67 million people across 13 states and D.C., has expressed concerns about affordability and reliability due to escalating demand and tightening supply conditions. The U.S. energy landscape is rapidly evolving, with data centers and artificial intelligence driving up electricity requirements.
PJM's Asim Z. Haque, senior vice president of governmental and member services, has emphasized the challenge of maintaining reliability amidst growing demand from data centers and other large loads. The PJM footprint is attractive for data center development, but the grid may struggle to keep pace without new supply and transmission infrastructure.
To tackle this, PJM is collaborating with stakeholders and offering recommendations to states. These include retail cost allocation, data center entry commitments, default service procurement, retail shopping, state programs and the total bill, demand response and energy efficiency, and siting/permitting. PJM has also partnered with Google/Tapestry to harness AI for streamlining project studies.
With 63 GW of projects either issued or with signed interconnection agreements, and a queue transition backlog now at 46 GW, PJM is dedicated to finding solutions that maintain reliability and affordability. The 'Governors' Collaborative', a group of state leaders working with PJM, is expected to play a crucial role in these efforts.
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