How PJM Is Grappling With Data Center Power Demand

PJM Interconnection, the nation’s largest grid operator, is preparing to file a wide-ranging proposal with federal regulators aimed at managing the rapid growth of electricity demand, including AI-driven data centers. The plan stands out as one of the first comprehensive efforts by a grid operator to address surging load from new technologies while maintaining system reliability and limiting cost impacts on consumers.

The proposal arrives at a moment when the electric grid is under growing stress. Tightening power supply-demand balances, high-profile grid failures, and a series of narrowly avoided outages have raised concerns about whether the power system can continue to meet demand reliably. At the same time, those pressures have increasingly shown up in electricity prices, which have increased sharply in many areas.

PJM’s proposal tries to answer a question grid operators across the country are now facing: how to say “yes” to large new loads without turning reliability into a gamble or costs into an afterthought. The plan lays out a structured approach to integrating data centers and other large loads, with an eye toward keeping commitments realistic and aligning responsibility with impact.

Abe Silverman is an assistant research scholar with the Ralph O’Connor Sustainable Energy Institute at Johns Hopkins University and a former general counsel to the New Jersey Board of Public Utilities. Tom Rutigliano is senior advocate for climate and energy at the Natural Resources Defense Council, where his work focuses on PJM.

Abe Silverman

Assistant Research Scholar, Ralph O’Connor Sustainable Energy Institute at Johns Hopkins University

Abe Silverman is an assistant research scholar with the Ralph O’Connor Sustainable Energy Institute at Johns Hopkins University and a former general counsel to the New Jersey Board of Public Utilities.

Tom Rutigliano

Senior Advocate, Natural Resources Defense Council

Tom Rutigliano is senior advocate for climate and energy at the Natural Resources Defense Council, where his work focuses on PJM.

host

Andy Stone

Energy Policy Now Host and Producer

Andy Stone is producer and host of Energy Policy Now, the Kleinman Center’s podcast series. He previously worked in business planning with PJM Interconnection and was a senior energy reporter at Forbes Magazine.