The biggest US power grid is under strain from AI - and no one is happy
TechCrunch • • business
Key Points:
- PJM Interconnection, a key U.S. grid operator, faces urgent pressure to overhaul its operations amid rising electricity demand driven by cloud computing, AI, and data centers, especially in Northern Virginia.
- The grid operator paused new power generation interconnection requests in 2022 due to a backlog, but demand has surged, with over 800 new requests totaling 220 gigawatts since reopening the queue.
- PJM proposes three options: longer-term commitments from utilities, tiered reliability with possible power cuts for lower-paying customers, or shifting to a more real-time market balancing supply and demand.
- Major utilities like American Electric Power express skepticism about PJM's ability to resolve issues soon, with some considering exiting the grid operator altogether due to dissatisfaction with proposed changes.
- The combination of rising demand, renewable energy disruption, and PJM's slow adaptation suggests a challenging transition period ahead, with political and market pressures intensifying the urgency for reform.
