The largest power grid in the US warns: AI data centers may face forced power outages to prevent residential electricity prices from skyrocketing

PANews July 28—PJM Interconnection, one of the largest power market operators in the U.S., has proposed adjusting the management mechanism for large electricity users: if an AI data center does not lock in sufficient generation resources in advance, it will face reduced power supply and even be forced to exit grid operations during periods of tight power supply or peak demand, to avoid widespread blackouts and prevent capacity costs from being passed on to residents. PJM expects that by 2038, the additional electricity demand from data centers will increase by about 70 gigawatts, while its covered region has already seen about 15 gigawatts of generation capacity exit since 2022. PJM plans to hold a “reliability back-up procurement” auction in September to fill the gap of about 7 gigawatts; the related costs will be borne by the data centers, and it will also push for data centers to sign long-term power contracts with power generation companies to secure energy supply.