Executive Vice President, Operations, Planning & Security, PJM Interconnection
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Warning that exponential data center development could outpace available capacity
Since late 2022, U.S. regulators and utilities have warned that a new class of digital infrastructure—AI-optimized data centers—could reshape national power demand, ending an era of flat electricity consumption and forcing a rapid buildout of generation and transmission. By early 2026, those warnings have crystallized into concrete challenges: PJM Interconnection's December 2025 capacity auction hit the $333.44/MW-day price cap and failed to meet reliability requirements for the first time in its history, with data centers accounting for $6.5 billion—or 40%—of the auction's $16.4 billion in costs. Regional grid operators now project U.S. data center electricity consumption will grow from 183 terawatt-hours (TWh) in 2024 to over 400 TWh by 2030, while the International Energy Agency (IEA) estimates data centres globally could more than double their electricity use to approximately 945 TWh in the same timeframe, with AI-optimized servers as the main driver.
Updated Jan 27
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