While most Americans worry about their next electric bill, a far bigger threat looms on the horizon—data centers. These power-hungry behemoths are set to consume a whopping 94% of PJM‘s projected 32 gigawatt load growth through 2030. That’s not just big. It’s unprecedented.
The math is brutal. PJM, which manages electricity for 65 million people across 13 states, warns we could face energy shortages by 2027. Not in some distant future. In three years. And why? Because everyone wants their TikToks and ChatGPT, but nobody planned for the power they’d need.
Data centers are clustering in places like Northern Virginia’s aptly named “Data Center Alley” and parts of Ohio. PJM’s July capacity auction saw an 82% price increase, adding billions to ratepayers’ bills. Convenient for them. Nightmare for the grid. This concentration creates massive stress points that existing infrastructure simply can’t handle.
Data clusters creating power choke points where infrastructure is already gasping for breath.
Your wallet’s already feeling it. The 2026/2027 capacity auction saw prices jump 22% from last year. Translation: higher bills for everyone. Even with temporary price caps through 2028, consumers are looking at an extra $100 billion through 2033. That’s about $70 more on monthly bills by 2028. Just what families needed!
The kicker? We’re all paying for capacity that might never materialize. If projected data centers don’t get built, too bad—80% of those increased costs still fall on regular folks. What a deal!
PJM’s proposed solution? Their “Critical Issue Fast Path” initially suggested data centers bring their own power or face curtailment. But after pushback, they made curtailment voluntary. Because asking nicely always works during an energy crisis!
Meanwhile, the interconnection queue for new power generation is a mess. Over 46,000 MW of approved resources haven’t been built, and another 63,000 MW awaits review. The worsening backlog is further exacerbated by thermal generator retirements that are straining an already tight supply-demand balance. Bureaucracy at its finest.
The clock’s ticking. By 2026, PJM will barely maintain reliability. By 2027, standards could break. And then? Rolling blackouts during heat waves and winter storms. Welcome to the grid apocalypse. Similar to the coal-dependent nations that suffered increased pollution when clean energy initiatives were abandoned, our grid faces its own environmental and reliability crisis.
References
- https://www.powwr.com/blog/how-data-centers-are-reshaping-pjms-energy-market
- https://www.eenews.net/articles/data-center-boom-sparks-sticker-shock-for-pjm-ratepayers/
- https://collaborative.evergreenaction.com/memos/pjms-bandaid-proposal-to-address-data-centers
- https://www.utilitydive.com/news/solving-pjms-data-center-problem/805600/
- https://insidelines.pjm.com/pjm-auction-procures-134311-mw-of-generation-resources-supply-responds-to-price-signal/
- https://whyy.org/articles/pjm-data-centers-electric-bills/
- https://pexapark.com/blog/coalition-of-pjm-states-industry-propose-bring-your-own-generation-plan-to-prevent-grid-overload/
