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Power Grid Watchdog Warns AI Data Centers Are Straining Supply
PJM projects reserve margins will fall short starting June 2027 due to retiring plants and rising AI data center demand, increasing outage risks in a 13-state region.
- Earlier this month, PJM Interconnection said electric supplies will fall short of the 'reserve margin' from June 2027 to May 2028 and urged data centers to bring their own generation.
- Old plants retiring and slow interconnections mean PJM Interconnection faces supply shortfalls amid extraordinary demand from data centers built to support artificial intelligence.
- In practice, utilities phone AWS to shed 1,000 MW, and AWS can pause roughly 30% of data-center operations, which can consume 100–500 MW and provide gigawatt-scale curtailment.
- As a consequence, state regulators and utility commissions may require data centers to generate power or disconnect during emergencies, while questioning why ratepayers should subsidize hyperscalers' reliability amid rising costs and emergency payments.
- Experts recommend utilities and regulators exclude data-center demand response from planning reserve margins, build more generation and storage, and enforce capacity-credit agreements with 75% participation floors to avoid a dependency trap.
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23 Articles
23 Articles
Forecast record electricity demand to test largest US power grid, blackout chances rise
Transmission line congestion on the largest U.S. power grid is expected to soar on Thursday as the PJM Interconnection forecasts record winter power demand ahead of the weekend, boosting electricity prices and raising the chances for rolling blackouts.
·United Kingdom
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Grid reliability projected to decline as data centers drive demand, watchdog says
The outlook for electric grid reliability in North America is worsening, as demand may outpace supply in the years ahead, according to a key watchdog. In its annual Long-Term Reliability Assessment, the North American Electric Reliability Corporation (NERC) warned that demand from new data centers and other large loads is expected to outpace energy supply…
·Washington, United States
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Total News Sources23
Leaning Left6Leaning Right0Center6Last UpdatedBias Distribution50% Left, 50% Center
Bias Distribution
- 50% of the sources lean Left, 50% of the sources are Center
50% Center
L 50%
C 50%
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