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U.S. Fossil-Fuel Peaker Plants Delay Retirement as AI Power Demand Soars

About 60% of fossil-fuel plants in the largest U.S. grid postponed retirements due to rising AI data center power needs, ensuring grid reliability amid higher fuel prices.

Summary by Oil Price
More than half of the power plants in the PJM market running on fossil fuels have either deferred or canceled plans to retire as soaring electricity demand from AI data centers has operators use all available capacity to ensure the flexibility and reliability of the grids. PJM Interconnection is the biggest power grid in the United States, whose area covers 13 mid-Atlantic and Midwest states and the District of Columbia. According to a Reuters a…

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Peak-load power plants fueled by fossil fuels are back in operation to supply data centers, increasing pollution and electricity prices in the US.

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Oil Price broke the news in London, United Kingdom on Tuesday, December 23, 2025.
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